Amerco postpones $275 million note deal, cites "adverse conditions" in junk market

By Paul A. Harris

St. Louis, Mo., Oct. 10 - Amerco Corp., parent company to U-Haul International, cited "current adverse conditions in the high yield market" as it postponed its Rule 144A offering of $275 million of senior notes due 2009 (Ba2/BB+/BB+), according to a Thursday press from the company.

Credit Suisse First Boston and Merrill Lynch were joint bookrunners. The co-managers were Banc One Capital Markets and US Bancorp Piper Jaffrey.

Present adverse conditions in the high yield "have resulted in "unacceptable terms of available financing," the Thursday release stated, adding that the Reno, Nev. company is reviewing other opportunities in the market that offer mutually acceptable terms.

The company had slated the note proceeds to repay bank debt and for general corporate purposes.

"The company believes that it has sufficient cash flow and liquidity to meet its existing debt service requirements and to repay other obligations when due," Gary Horton, chief financial officer of Amerco, stated in the release.

Price talk of 12% area was heard on the deal on Oct. 7.

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