H&E Equipment to price $750 million eight-year notes on Thursday

By Paul A. Harris

Portland, Ore., Aug. 17 – H&E Equipment Services, Inc. plans to price a $750 million offering of eight-year senior notes (B3/BB-) in a quick-to-market Thursday trade following a late-morning conference call with investors, according to an informed source.

Wells Fargo Securities LLC is the bookrunner for the Rule 144A and Regulation S for life offering.

The notes become callable after three years at par plus 75% of the coupon.

The Baton Rouge, La.-based heavy equipment manufacturing and services company plans to use the proceeds to tender, redeem and or repurchase its 7% senior notes due 2022 and to repay a portion of its ABL facility.

The new deal surfaces on the heels the H&E Equipment Services' bid for Neff Corp. falling to a competing bid from United Rentals Inc. (see related story in this issue).

H&E Equipment had in place an $825 million senior unsecured bridge loan to help fund that acquisition of Neff for $1.2 billion, including about $690 million in debt currently on Neff's balance sheet.

The high-yield bond market had anticipated an $825 million bond offering to replace the bridge loan.

In the wake of the succeeding bid from United Rentals, which H&E Equipment is declining to counter, the bridge loan is canceled sources said.

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