By Paul A. Harris
St. Louis, June 26 - RSC Equipment Rental Inc. and RSC Holdings III priced an upsized $400 million issue of 10% eight-year first-lien senior secured notes (B1/BB/) at 97.32 to yield 10½% on Friday, according to market sources.
The yield was printed at the tight end of the 10½% to 10¾% price talk.
The deal was upsized from $300 million.
Deutsche Bank Securities Inc., Banc of America Securities LLC, Morgan Stanley & Co. Inc., J.P. Morgan Securities Inc. and Wachovia Securities LLC were joint bookrunners.
Co-managers are Barclays Capital Inc. and Goldman Sachs & Co.
Proceeds will be used to refinance RSC's term loan and revolving credit facility.
RSC is a rental equipment business serving the construction, manufacturing, industrial and petrochemical industries. The company is based in Scottsdale, Ariz.
| Issuer: | RSC Equipment Rental Inc./RSC Holdings III
|
| Face amount: | $400 million, increased from $300 million
|
| Proceeds: | $389.28 million
|
| Maturity: | July 15, 2017
|
| Security description: | First-lien senior secured notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Banc of America Securities LLC, Morgan Stanley & Co. Inc., J.P. Morgan Securities Inc., Wachovia Securities LLC
|
| Co-managers: | Barclays Capital Inc. and Goldman Sachs & Co.
|
| Coupon: | 10%
|
| Price: | 97.32
|
| Yield: | 10½%
|
| Spread: | 712 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps until July 15, 2013, then callable at a premium
|
| Trade date: | June 26
|
| Settlement date: | July 1
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A for life
|
| Price talk: | 10½% to 10¾%
|
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