H&E Equipment gets tenders for 97.8% of 11 1/8% notes, all 12½% notes

By Jennifer Chiou

New York, Aug. 4 - H&E Equipment Services, Inc. said it accepted tenders from holders of $195.5 million or 97.8% of its $200 million of 11 1/8% senior secured notes due 2012 and all $53 million of its 12½% senior subordinated notes due 2013.

The expiration was midnight ET on Aug. 3, pushed back from midnight ET on July 20.

At July 19, holders had tendered $195.5 million or 97.8% of the 11 1/8% notes and all of the 12½% notes, unchanged from the last announcement on July 6 and also unchanged from June 21.

At a previous announcement on July 6, H&E announced revised pricing for the tender.

For the 11 1/8% notes, H&E said it paid $1,097.74 per $1,000 principal amount and for the 12½% notes the amount is $1,116.13 per $1,000 principal amount.

Both totals include the $30.00 per $1,000 consent payment that will be paid to all who tender.

The company said it paid $217,568,501, including accrued interest up to but excluding the payment date, for the 11 1/8% notes and $60,056,626 for the 12½% notes, also including accrued interest.

The amounts on offer were revised because of the extension of the tender.

On June 21, H&E extended the offer to midnight ET on July 20 from midnight ET on June 22.

The tender offer was announced on May 25 and was carried out jointly with wholly owned subsidiary H&E Finance Corp., which jointly issued the notes.

Pricing was based on the cash flows to the first call date of each series of notes, discounted using the bid-side yield of the reference U.S. Treasury plus 50 basis points.

In the consent solicitation, H&E received enough consents to amend the note indentures to eliminate substantially all of the restrictive covenants, eliminate or modify certain events of default and eliminate or modify related provisions.

The offer is subject to conditions including the receipt of consents for a majority of each series of notes and completion of debt financing. H&E also needs the approval of its bank lenders.

H&E also said it closed a $250 million offering of 8 3/8% senior unsecured notes 2016.

Credit Suisse Securities (USA) LLC is dealer manager and solicitation agent (212 538-0652 or 800 820-1653). D.F. King & Co. Inc. is the information agent (212 269-5550 or 866 387-1500).

H&E is a Baton Rouge, La., equipment services company.

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