By Paul A. Harris
St. Louis, Mo., June 3 - H&E Equipment Services, Inc. priced Monday its deal that was downsized and restructured on May 31.
The firm sold $200 million of senior secured second priority notes due June 15, 2012 (B3/B) at 99.263 to yield 11¼%, according to syndicate sources. The notes were decreased from $275 million originally announced.
Price talk was for a yield in the 11% area.
A $50 million senior subordinated mezzanine tranche that was announced as part of the May 31 restructuring did not price on Monday, according to one syndicate source. The source added that the transaction is pending and is near-term business.
Credit Suisse First Boston and Banc of America Securities were joint bookrunners. Fleet Securities was co-manager.
Proceeds from the Rule 144A deal will be used to fund the merger of H&E with ICM by sponsor Bruckman, Rosser, Sherrill and to repay bank debt.
Issuer: H&E Equipment Services, Inc.
Amount: $200 million (decreased from $275 million on May 31)
Maturity: June 15, 2012
Type: Senior secured second priority notes
Bookrunners: Credit Suisse First Boston, Banc of America Securities
Co-manager: Fleet Securities
Coupon: 11 1/8%
Price: 99.263
Yield: 11¼%
| Price talk: | 11% area
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| Spread: | 624 basis points
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| Call features: | Callable on June 15, 2007 at 105.563, 103.708, 101.854, par on June 15, 2010 and thereafter
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| Equity clawback: | Until June 15, 2005 for 35% at 111.125
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| Settlement date: | June 17 (T+10)
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| Ratings: | Moody's: B3
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| Standard & Poor's: B
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