By Paul A. Harris
Portland, Ore., Feb. 6 Algeco Scotsman priced $825 million and 750 million face amounts of high-yield bonds in four tranches on Tuesday, according to a market source.
The deal included three tranches of five-year senior secured notes (B2/B-/B+) from Algeco Scotsman Global Finance plc:
600 million of 6½% fixed-rate notes priced at 97.921 to yield 7%;
$520 million of 8% fixed-rate notes priced at 97.997 to yield 8½%; and
150 million of Euribor plus 625 basis points floating-rate notes that priced at 98.
Algeco Scotsman Global Finance 2 plc priced $305 million of 10% senior unsecured notes due March 15, 2023 (Caa1/CCC/CCC+) at 94.008 to yield 11½%.
In a restructuring, a proposed tranche of euro-denominated unsecured fixed-rate notes was abandoned.
BofA Merrill Lynch, Deutsche Bank, Goldman Sachs, Barclays, Credit Suisse and ING were the joint global coordinators.
Proceeds, together with proceeds from an equity contribution, borrowings under a new ABL facility and cash on hand, will be used, among other things, to repay debt, including all debt outstanding under Algeco Scotsmans existing ABL facilities agreement, existing senior secured notes and existing senior unsecured notes.
Algeco Scotsman provides modular space, secure portable storage solutions and remote workforce accommodation management.
| Company: | Algeco Scotsman
|
| Total amount: | $825 million and 750 million
|
| Global coordinators: | BofA Merrill Lynch, Deutsche Bank, Goldman Sachs, Barclays, Credit Suisse, ING
|
| Trade date: | Feb. 6
|
| Settlement date: | Feb. 15
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Dollar five-year secured notes
|
| Issuer: | Algeco Scotsman Global Finance plc
|
| Amount: | $520 million
|
| Maturity: | Feb. 15, 2023
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 8%
|
| Price: | 97.997
|
| Yield: | 8½%
|
| Spread: | 597 bps
|
| Call protection: | Two years
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Fitch: B+
|
| Price talk: | 8% area
|
| Bill and deliver: | BofA Merrill Lynch
|
|
|
| Euro five-year secured notes
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| Issuer: | Algeco Scotsman Global Finance plc
|
| Amount: | 600 million
|
| Maturity: | Feb. 15, 2023
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 6½%
|
| Price: | 97.921
|
| Yield: | 7%
|
| Spread: | 694 bps
|
| Call protection: | Two years
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Fitch: B+
|
| Price talk: | 6½% to 6Ύ%
|
| Bill and deliver: | Goldman Sachs
|
|
|
| Euro five-year secured floaters
|
| Issuer: | Algeco Scotsman Global Finance plc
|
| Amount: | 150 million
|
| Tenor: | Five years
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 625 bps
|
| Price: | 98
|
| Call protection: | One year
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Fitch: B+
|
| Price talk: | Euribor plus 600 bps to 625 bps
|
| Bill and deliver: | Goldman Sachs
|
|
|
| Dollar five-year unsecured notes
|
| Issuer: | Algeco Scotsman Global Finance 2 plc
|
| Amount: | $305 million
|
| Maturity: | March 15, 2023
|
| Securities: | Senior unsecured notes
|
| Coupon: | 10%
|
| Price: | 94.008
|
| Yield: | 11½%
|
| Spread: | 745 bps
|
| Call protection: | Two years
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC
|
| Fitch: CCC+
|
| Price talk: | 10% area
|
| Bill and deliver: | Deutsche Bank
|
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