H&E Equipment sets pricing in tender for 11 1/8%, 12½% notes

By Jennifer Chiou

New York, June 6 - H&E Equipment Services, Inc. said it set pricing in its 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.

For each $1,000 principal amount, the company said it will pay $1,104.29 for the 11 1/8% notes and $1,123.70 for the 12½% notes. Both payouts include the $30.00 consent payment for those who tendered their securities before the 5 p.m. ET on June 6 consent deadline.

Pricing was fixed at 10 a.m. ET on June 8. The reference yield was 5.124%.

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

By the consent deadline, holders had tendered $195.08 million or 97.54% of the 11 1/8% notes and all the 12½% notes.

H&E previously said it executed a supplemental indenture which will become effective when it buys the notes.

The consent solicitation is part of a tender offer announced on May 25.

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

Pricing was 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.

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.

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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