RSC Equipment credit facility expected as early November business

By Sara Rosenberg

New York, Oct. 10 - RSC Equipment Rental anticipates holding a bank meeting sometime in early November to launch its proposed credit facility, according to a market source.

Deutsche Bank and Citigroup are the lead banks on the deal, with Deutsche the left lead.

Details on the size of the facility and tranching have not yet been announced, the source added.

Proceeds from the credit facility, along with a proposed bond offering, will be used to help fund the acquisition of RSC by Ripplewood Holdings and Oak Hill Capital Management from Atlas Copco for $3.4 billion, plus up to $400 million of additional consideration in the form of notes, based on the achievement of profitability targets through 2008. Atlas Copco will retain a 14.5% stake in RSC.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close prior to year end.

Scottsdale, Ariz.-based RSC is the second-largest heavy equipment rental company in the United States.

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