Ritchie Bros. starts roadshow for $500 million eight-year notes backing IronPlanet acquisition

By Paul A. Harris

Portland, Ore., Nov. 30 – Ritchie Bros. Auctioneers Inc. began a roadshow on Wednesday in New York and New Jersey for a $500 million offering of eight-year senior notes, according to market sources.

Initial guidance has the notes coming with a yield in the high 5% area, according to a portfolio manager, who added that there is $100 million of reverse inquiry in the deal.

The roadshow continues in Boston on Thursday.

There is a New York group lunch on Friday.

The roadshow is scheduled to stop in Los Angeles on Monday and in San Francisco on Tuesday.

Goldman Sachs & Co. is the left bookrunner for the Rule 144A for life and Regulation S offering. RBC Capital Markets Corp. is the joint bookrunner.

The notes, which will mature in 2024, come with three years of call protection.

The Vancouver, B.C.-based industrial auctioneer and equipment distributor plans to use the proceeds, together with a new delayed-draw term loan and cash on hand or available under the new revolver, to fund the acquisition of IronPlanet, a California-based online marketplace for used heavy equipment and other durable asset sales.

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