Ahern Rentals holders deliver needed consents for 9¼% notes due 2013

By Susanna Moon

Chicago, Dec. 30 - Ahern Rentals Inc. said it received consents for $252,472,000 principal amount, or 87%, of its 9¼% second-priority senior secured notes due 2013.

The consent solicitation expired at 5 p.m. ET on Dec. 23. It began on Dec. 7.

The company and the indenture trustee have executed the supplemental indenture effective as of Dec. 23.

The company said on Dec. 18 that it amended the consent solicitation for its 9¼% notes to reduce the minimum amount of priority-lien debt it can incur under the indenture to $396 million from $425 million.

On Dec. 16, legal counsel Bracewell & Giuliani LLP said that several holders of Ahern's 9¼% notes formed a group to consider the company's consent solicitation and related proposed financing.

As previously reported, Ahern Rentals sought to modify the note indenture and the intercreditor agreement among the company, trustee Wells Fargo Bank, NA and collateral and control agent Wachovia Bank, NA to increase the permitted priority lien cap in connection with a new term loan facility, which is expected to be effected through an amendment to the company's credit facility.

Consents were needed from the holders of at least a majority of the notes.

Holders who consented will receive $2.50 per $1,000 principal amount of notes.

Oppenheimer & Co., Inc. (212 885-4592) was the solicitation agent.

Ahern Rentals is a Las Vegas-based equipment rental company.

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