Ashtead terminates tender for 9% notes; Aug. 17 redemption planned

By Jennifer Chiou

New York, July 16 - Ashtead Capital, Inc. announced the termination of its cash tender offer for any and all of its $550 million of outstanding 9% second-priority senior secured notes due 2016 after falling short of tenders and consents from holders of a majority of the notes.

The company had also been soliciting consents to amend the note indenture to eliminate most of the restrictive covenants and some events of default.

Ashtead said that it now intends to redeem the notes on Aug. 17 at 103% of par plus accrued interest.

The consent deadline in the offer was to be 5 p.m. ET on July 13, and the tender was set to end at 11:59 p.m. ET on July 27. It began on June 29.

For each $1,000 of notes, the company was offering $1,033.75 plus any accrued interest to the settlement date. The payout included a consent payment equal to $10.00 for those who validly tendered their notes by the early deadline.

The tender offer and consent solicitation were conditioned on, among other things, the receipt of consents from holders of at least a majority of the notes and sufficient debt financing. Ashtead raised $500 million in an issue of 6½% second-priority senior secured notes due 2022.

The dealer manager and solicitation agent was Deutsche Bank Securities, Inc. (855 287-1922). The information agent and tender agent was D.F. King & Co., Inc. (800 829-6554 or 212 269-5550).

Ashtead Capital is a subsidiary of Ashtead Group plc, a London-based equipment rental company.

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