New Issue: H&E Equipment prices $100 million tap of 7% notes due 2022 at 108.5 to yield 5.55%

By Paul A. Harris

Portland, Ore., Jan. 30 - H&E Equipment Services, Inc. priced a $100 million add-on to its 7% senior notes due Sept. 1, 2022 (B3/B+/) at 108.5 to yield 5.55% on Wednesday, according to a market source.

The reoffer price came at the rich end of the 108 to 108.5 price talk.

Deutsche Bank Securities Inc. ran the books for the quick-to-market deal.

The Baton Rouge, La.-based construction and industrial equipment company plans to use the proceeds to repay bank debt.

Issuer:	H&E Equipment Services, Inc.
Face amount:	$100 million
Proceeds:	$108.5 million
Maturity:	Sept. 1, 2022
Security description:	Add-on to 7% senior notes due Sept. 1, 2022
Bookrunner:	Deutsche Bank Securities Inc.
Coupon:	7%
Price:	108.5
Yield:	5.55%
Spread:	353 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Sept. 1, 2017, then callable at 103.5
Equity clawback:	35% at 107 until Sept. 1, 2015
Trade date:	Jan. 30
Settlement date:	Feb. 4
Ratings:	Moody's: B3
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S
Price talk:	108 to 108.5
Marketing:	Quick to market
Original issue:	$530 million issue priced at par on Aug. 10, 2012
Total issue size:	$630 million

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