New Issue: RSC Rental prices upsized $650 million of 10-year notes at par to yield 8¼%

By Paul A. Harris

Portland, Ore., Jan. 13 - RSC Equipment Rental Inc. and RSC Holdings III LLC priced an upsized $650 million issue of 10-year senior notes (existing Caa2/confirmed B-) at par to yield 8¼% on Thursday, according to an informed source.

The yield printed at the tight end of the 8¼% to 8½% price talk.

Deutsche Bank Securities, Bank of America Merrill Lynch, Wells Fargo Securities, Barclays Capital, J.P. Morgan Securities LLC and Goldman Sachs & Co. were the joint bookrunners for the quick-to-market issue, which was upsized from $450 million.

The Scottsdale, Ariz.-based equipment rental company will use the proceeds to repay bank debt.

Issuer:	RSC Equipment Rental Inc. and RSC Holdings III LLC
Amount:	$650 million (increased from $450 million)
Maturity:	Feb. 1, 2021
Securities:	Senior notes
Bookrunners:	Deutsche Bank Securities, Bank of America Merrill Lynch, Wells Fargo Securities, Barclays Capital, J.P. Morgan Securities LLC, Goldman Sachs & Co.
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	495 bps
Call features:	Callable on Feb. 1, 2016 at 104.125, 102.75, 101.375, par on and after Feb. 1, 2019
Equity clawback:	35% at 108.25 until Feb. 1, 2014
Trade date:	Jan. 13
Settlement date:	Jan. 19
Ratings:	Moody's: Caa2 (existing)
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights
Price talk:	8¼% to 8½%
Marketing:	Quick-to-market

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