By Cristal Cody
Chicago, Aug. 3 – Ashtead Capital Inc. sold a $1.25 billion two-part offering (Baa3/BBB-/BBB-) on Tuesday, according to a market source.
The company sold $550 million of five-year notes with a 1.5% coupon for a spread of 90 basis points over Treasuries. The notes had been talked on Tuesday with a spread in the Treasuries plus 120 bps area.
Additionally, the company sold a 10-year tranche for $750 million. The notes priced with a 2.45% coupon at a Treasuries plus 130 bps spread. Spread talk had the notes expected in the Treasuries plus 170 bps area.
The benchmark-sized notes will be guaranteed by parent company Ashtead Group plc, according to a company press release.
Fixed-income investor calls were held Monday.
BofA Securities Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the bookrunners for the Rule 144A and Regulation S offering.
Proceeds are earmarked for the redemption of the company’s outstanding 4.125% senior notes due 2025 and 5.25% senior notes due 2026.
Ashtead is an industrial equipment rental company based in London.
| Issuer: | Ashtead Capital Inc.
|
| Guarantor: | Ashtead Group plc
|
| Issue: | Notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Trade date: | Aug. 3
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Marketing: | Investor call
|
|
|
| 2026 notes
|
| Amount: | $550 million
|
| Maturity: | Aug. 12, 2026
|
| Coupon: | 1.5%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 120 bps area
|
|
|
| 2031 notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 12, 2031
|
| Coupon: | 2.45%
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | Treasuries plus 170 bps area
|
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