Neff solicits consents to amend 9 5/8% senior secured notes due 2016

By Marisa Wong

Madison, Wis., Oct. 15 - Neff Rental LLC and Neff Rental Finance Corp. announced that they are soliciting consents to proposed amendments to the indenture governing their outstanding 9 5/8% senior secured notes due 2016.

The purpose of the solicitation is to allow the issuers to borrow additional amounts under their ABL facility and make a distribution to the members of their ultimate parent company, Neff Holdings LLC, according to a press release.

The proposed amendments, among other things, would modify the debt incurrence covenant to allow for first-priority lien credit facilities up to the greater of $400 million and the borrowing base, modify the restricted payments covenant to provide for a distribution of up to $110 million to holders of membership interests of the company and amend some other definitions contained in the notes indenture.

Holders of record as of Oct. 11 may participate in the consent solicitation.

The solicitation began on Tuesday and will expire at 5 p.m. ET on Oct. 21.

The issuers are offering a cash consent payment of $25 per $1,000 principal amount of notes to holders who deliver their consents by the expiration time.

The solicitation is contingent upon the receipt of consents from holders of a majority in principal amount of the notes, the execution of a supplemental indenture effecting the proposed changes and completion of an amendment to the ABL facility. If these conditions are not met by 5 p.m. ET on the 60th day following the expiration of the offer, the proposed amendments will not become operative and no consent payment will be made.

BofA Merrill Lynch (888 292-0070 or 980 388-3646) is the solicitation agent, and D.F. King & Co., Inc. (212 269-5550 or 800 848-3416) is the information agent.

Neff is a Miami-based construction equipment rental company.

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