H&E Equipment tenders for 11 1/8%, 12½% notes

New York, May 25 - H&E Equipment Services, Inc. said it has begun a tender offer for its $200 million of 11 1/8% senior secured notes due 2012 and $53 million of 12½% senior subordinated notes due 2013.

The tender is being carried out jointly with wholly owned subsidiary H&E Finance Corp., which jointly issued the notes.

Pricing will be based on the cash flows to the first call date of each series of notes, discounted using the bid-side yield of the reference U.S. Treasury plus 50 basis points.

Holders who tender with consents by the consent deadline of 5 p.m. ET on June 6 will receive a consent payment of $30.00 per $1,000 principal amount of notes, a sum included in the total amount to be calculated.

Pricing will be fixed on June 7.

H&E will also pay accrued interest up to but excluding the payment date.

In the consent solicitation, H&E is seeking to amend the note indentures to eliminate substantially all of the restrictive covenants, eliminate or modify certain events of default and eliminate or modify related provisions.

Notes cannot be tendered without consents nor vice versa.

The tender ends at midnight ET on June 22.

The offer is subject to conditions including the receipt of consents for a majority of each series of notes and completion of debt financing to raise at least $250 million. H&E also needs the approval of its bank lenders.

Credit Suisse Securities (USA) LLC is dealer manager and solicitation agent (212 538-0652 or 800 820-1653). D.F. King & Co. Inc. is the information agent (212 269-5550 or 866 387-1500).

H&E is a Baton Rouge, La., equipment services company.

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