Algeco Scotsman sets full roadshow for €1.42 billion equivalent notes in five tranches

By Paul A. Harris

Portland, Ore., Jan. 25 – Algeco Scotsman plans to start a full international roadshow on Friday in London City for a €1,415,000,000 equivalent five-part offering of high-yield notes, according to market sources.

The deal is expected to include €1.12 billion equivalent in three tranches of senior secured notes (B2/B-/B+) from affiliate Algeco Scotsman Global Finance plc. They include dollar- and euro-denominated fixed rate notes, which become callable after two years at par plus 50% of the respective coupons, and euro-denominated floating-rate notes, which become callable after one year at 101.

The deal is also expected to include €295 million equivalent of 5.5-year senior unsecured fixed-rate notes (Caa1/CCC/CCC+) from affiliate Algeco Scotsman Global Finance 2 plc. The notes in both unsecured tranches become callable after two years at par plus 50% of the coupons.

All five tranche sizes remain to be determined.

The roadshow continues on Monday in London's West End, moves to Paris on Tuesday, then to the East Coast of the United States on Wednesday and Thursday (Feb. 1), and to Amsterdam and Milan on Feb. 2. Further details on the marketing of the deal remain to be determined.

Global coordinator BofA Merrill Lynch will bill and deliver for the dollar-denominated secured notes. Global coordinator Deutsche Bank will bill and deliver for both tranches of unsecured notes. Global coordinator Goldman Sachs will bill and deliver for both tranches of euro-denominated secured notes. Barclays, Credit Suisse and ING are also joint global coordinators.

Proceeds from the Rule 144A and Regulation S deal, 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 Scotsman's existing ABL facilities agreement, existing senior secured notes and existing senior unsecured notes.

Algeco Scotsman is based in Baltimore and provides modular space, secure portable storage solutions and remote workforce accommodation management.

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