RSC Equipment $2.83 billion credit facility to launch Nov. 6

By Sara Rosenberg

New York, Oct. 30 - RSC Equipment Rental is scheduled to hold a bank meeting on Nov. 6 to launch its proposed $2.83 billion credit facility, according to a market source.

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

The facility consists of a $1.3 billion asset-based revolver, a $400 million asset-based term loan and a $1.13 billion second-lien term loan, the source said.

Proceeds from the credit facility, along with $620 million of senior notes and $585 million of equity, 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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