New Issue: Ashtead prices upsized $500 million 10-year secured notes at par to yield 5 5/8%

By Paul A. Harris

Portland, Ore., Sept. 10 – Ashtead Capital, Inc., a wholly owned subsidiary of Ashtead Group, priced an upsized $500 million issue of 10-year second priority senior secured notes (Ba3/BB-/) at par to yield 5 5/8% on Wednesday, according to a market source.

The deal was upsized from $400 million.

The yield printed on top of yield talk. Initial guidance was in the 5½% area, sources said.

Deutsche Bank Securities Inc., Citigroup Global Markets, J.P. Morgan Securities LLC, BoA Merrill Lynch, Wells Fargo Securities LLC, RBS Securities, Lloyds TSB, Barclays, HSBC and MUFG were the joint bookrunners for the Rule 144A for life offer.

The London-based equipment rental company plans to use the proceeds to repay its ABL facility.

Issuer:	Ashtead Capital, Inc.
Amount:	$500 million, increased from $400 million
Maturity:	2024
Securities:	Second priority senior secured notes
Bookrunners:	Deutsche Bank Securities Inc., Citigroup Global Markets, J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, RBS Securities, Lloyds TSB, Barclays, HSBC, MUFG
Coupon:	5 5/8%
Price:	Par
Yield:	5 5/8%
Spread:	309 bps
Call protection:	Five years
Trade date:	Sept. 10
Settlement date:	Sept. 17
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	5 5/8% area
Marketing:	Quick to market

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