LONDON (dpa-AFX) - Ashtead Group plc (AHT.L), a British industrial equipment rental company, on Tuesday announced the pricing of $1.2 billion of second priority secured notes.
The company said it has priced the offering of $600 million aggregate principal amount of 4.000% second priority senior secured notes due 2028 and $600 million aggregate principal amount of 4.250% second priority senior secured notes due 2029 by Ashtead Capital, Inc., an indirect wholly owned subsidiary of the company.
The issue prices are 100 percent of the principal amount of the 2028 Notes and 100 percent of the principal amount of the 2029 Notes, respectively. The offering is expected to close on 4 November 2019, subject to customary closing conditions.
Ashtead said that the notes will be fully and unconditionally guaranteed on a senior secured basis by the company and certain of direct and indirect subsidiaries.
Once the 2024 notes are fully repurchased or redeemed, the company expects that its collateral will be released under its existing notes.
Ashtead intends to use the net proceeds of the offering to fund the tender offer as well as related redemption of all of its outstanding $500 million aggregate principal amount of 2024 Notes, and to repay a portion of the outstanding amounts borrowed under its first priority senior secured credit facility. The company also intends to use the net proceeds to pay related fees and expenses.
The closing of the offering will not be conditioned on the consummation of the offer.
Brendan Horgan, Ashtead's chief executive, said, 'We are delighted with the support our new offering has commanded from investors. Good credit markets have enabled us to fix the cost of a further tranche of our debt at attractive long-term rates and extend our average debt maturity beyond 6 years.'
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