New Issue: Algeco Scotsman sells $1.82 billion, €275 million notes in three parts

By Paul A. Harris

Portland, Ore., Oct. 2 - Algeco Scotsman Global Finance plc priced a multi-currency, multi-tranche high-yield bond offering on Tuesday, according to market sources.

The transaction included an upsized $1,075,000,000 issue of six-year senior secured notes (B1/B+/), which were priced at par to yield 8½%.

The tranche was upsized from $1.04 billion. The yield printed 25 basis points higher than the 8¼% yield talk. That talk had been revised upward from earlier talk of 7¾% to 8%.

Algeco Scotsman also priced a €250 million tranche of eight-year senior secured notes (B1/B+/) at par to yield 9%, in line with final yield talk, which had the euro-denominated notes coming 50 bps behind the dollar-denominated notes. Earlier yield talk was 8% to 8¼% on the euro-denominated tranche of senior secured notes.

Behind the two secured tranches the company also priced a slightly downsized $745 million tranche of seven-year senior unsecured notes (B3/B-/) at par to yield 10¾%.

The yield printed 25 bps higher than the 10½% yield talk, which had been revised upward from earlier yield talk of 9¾% to 10%. The tranche size was decreased from $750 million.

A proposed euro-denominated tranche of senior unsecured notes was withdrawn from the market.

The deal underwent extensive covenant changes, market sources said.

Deutsche Bank Securities Inc. was the left bookrunner.

RBS Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.

Proceeds will be used to repay debt and to fund the acquisition of Ausco Modular.

Algeco Scotsman is a Baltimore-based company that is focused on modular space and secure storage solutions.

Issuer:	Algeco Scotsman Global Finance plc
Left bookrunner:	Deutsche Bank Securities Inc.
Joint bookrunners:	RBS Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., UBS Securities LLC, Wells Fargo Securities LLC
Trade date:	Oct. 2
Settlement date:	Oct. 11
Distribution:	Rule 144A and Regulation S for life
Marketing:	Roadshow
Dollar-denominated senior secured notes
Amount:	$1,075,000,000 billion, increased from $1.04 billion
Maturity:	Oct. 15, 2018
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	767 bps
Call features:	Callable on Oct. 15, 2015 at 104.25, 102.125, par on and after Oct. 15, 2017
Equity clawback:	35% at 108.5 until Oct. 15, 2015
Ratings:	Moody's: B1
	Standard & Poor's: B+
Price talk:	8¼%, revised higher from 7¾% to 8%
Euro-denominated senior secured notes
Amount:	€250 million
Maturity:	Oct. 15, 2018
Coupon:	9%
Price:	Par
Yield:	9%
Spread:	831 bps
Call features:	Callable on Oct. 15, 2015 at 104.5, 102.25, par on and after Oct. 15, 2017
Equity clawback:	35% at 109 until Oct. 15, 2015
Ratings:	Moody's: B1
	Standard & Poor's: B+
Price talk:	50 bps behind the dollar-denominated senior secured notes (revised from 8% to 8¼%)
Senior unsecured notes
Amount:	$745 million, decreased from $750 million
Maturity:	Oct. 15, 2019
Coupon:	10¾%
Price:	Par
Yield:	10¾%
Spread:	969 bps
Call features:	Callable on Oct. 15, 2016 at 105.375, 102.688, par on and after Oct. 15, 2018
Equity clawback:	35% at 110.75 until Oct. 15, 2015
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	10½%, revised upward from 9¾% to 10%

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