By Paul A. Harris
St. Louis, Nov. 17 - Rental Services Corp. priced a $620 million issue of eight-year senior notes (Caa1/B-) at par to yield 9½% on Friday, according to a market source.
The yield came 12.5 basis points inside of the 9¾% area price talk.
Deutsche Bank Securities and Citigroup were joint bookrunners. GE Capital was the co-manager.
Proceeds will be used to fund the acquisition of the company by Ripplewood Holdings and Oak Hill Capital Management.
Rental Services is the second-largest equipment rental company in North America.
| Issuer: | Rental Services Corp.
|
| Amount: | $620 million
|
| Maturity: | Dec. 1, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities, Citigroup
|
| Co-manager: | GE Capital
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 484 bps
|
| Call: | Callable on Dec. 1, 2010 at 104.75
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 27
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 9¾% area
|
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