By Lisa Kerner
Charlotte, N.C., May 1 - Algeco Scotsman Global Sarl's parent company Algeco/Scotsman Holding Sarl, through its wholly owned subsidiary Algeco Scotsman PIK SA, entered into a $400 million payment-in-kind debt loan agreement to fund a partial redemption of capital to the parent company's shareholders.
The PIK debt will mature in May 2018 and will bear interest at a rate equal to 15.75% per annum, or 15% per annum to the extent paid in cash, according to a company news release.
The debt will be will be mandatorily prepayable with the proceeds of certain offerings or other sales of equity.
Funding of the PIK debt is expected to occur May 14.
Goldman Sachs and Morgan Stanley acted as joint bookrunners on the loan agreement.
Algeco Scotsman is a Baltimore, Md.-based business services provider focused on modular space and secure portable storage solutions.
| Issuer: | Algeco Scotsman PIK SA
|
| Issue: | Payment-in-kind loan
|
| Amount: | $400 million
|
| Maturity: | May 2018
|
| Coupon: | 15.75% in kind or 15% in cash
|
| Bookrunners: | Goldman Sachs and Morgan Stanley
|
| Pricing date: | May 1
|
| Settlement date: | May 14
|
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