H&E Equipment prolongs tender for 11 1/8%, 12½% notes

By Jennifer Chiou

New York, June 21 - H&E Equipment Services, Inc. said it extended its tender offer for its $200 million of 11 1/8% senior secured notes due 2012 and $53 million of 12½% senior subordinated notes due 2013 to midnight ET on July 20.

The tender was set to end at midnight ET on June 22.

As a result of the extension, new pricing will be set at 10 a.m. ET on July 6.

As of June 21, the company said holders of $195.5 million or 97.8% of the 11 1/8% notes had tendered their securities and all holders of the 12½% notes had tendered their securities.

Based on pricing fixed at 10 a.m. ET on June 8, for each $1,000 principal amount, the company had previously said it would pay $1,104.29 for the 11 1/8% notes and $1,123.70 for the 12½% notes. Both payouts included the $30.00 consent payment for those who tendered their securities before the 5 p.m. ET on June 6 consent deadline.

H&E will also pay accrued interest up to but excluding the payment date.

By the consent deadline, holders had tendered $195.08 million or 97.54% of the 11 1/8% notes and all the 12½% notes.

H&E previously said it executed a supplemental indenture, which will become effective when it buys the notes.

The consent solicitation is part of a tender offer announced on May 25.

The tender is being carried out jointly with wholly owned subsidiary H&E Finance Corp., which jointly issued the notes.

Pricing will be based on the cash flows to the first call date of each series of notes, discounted using the bid-side yield of the reference U.S. Treasury plus 50 basis points.

In the consent solicitation, H&E is seeking to amend the note indentures to eliminate substantially all of the restrictive covenants, eliminate or modify certain events of default and eliminate or modify related provisions.

The offer is subject to conditions including the receipt of consents for a majority of each series of notes and completion of debt financing to raise at least $250 million. H&E also needs the approval of its bank lenders.

Credit Suisse Securities (USA) LLC is dealer manager and solicitation agent (212 538-0652 or 800 820-1653). D.F. King & Co. Inc. is the information agent (212 269-5550 or 866 387-1500).

H&E is a Baton Rouge, La., equipment services company.

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