By Paul A. Harris
Portland, Ore., Nov. 30 – H&E Equipment Services, Inc. priced a $1.25 billion issue of eight-year senior notes (B2/BB-) at par to yield 3 7/8% in a Monday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 4% area. Initial guidance was in the low 4% area.
The deal was heard to be playing to a $2.4 billion order book at 11:30 a.m. ET on Monday, a trader said.
BofA Securities Inc. had the books.
The Baton Rouge, La.-based heavy equipment manufacturing and services company plans to use the proceeds to fund the tender and/or redemption of its 5 5/8% senior notes due 2025 and for general corporate purposes.
Issuer: | H&E Equipment Services, Inc.
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Amount: | $1.25 billion
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Maturity: | Dec. 15, 2028
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Securities: | Senior notes
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Bookrunner: | BofA Securities Inc.
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Coupon: | 3 7/8%
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Price: | Par
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Yield: | 3 7/8%
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Spread: | 319 bps
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First call: | Dec. 15, 2023 at 101.938
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Equity clawback: | 40% at 103.875 until Dec. 15, 2023
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Trade date: | Nov. 30
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Settlement date: | Dec. 14
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Ratings: | Moody's: B2
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| S&P: BB-
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Distribution: | Rule 144A for life and Regulation S
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Price talk: | 4% area
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Marketing: | Drive-by
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