By Paul A. Harris
Portland, Ore., Nov. 30 – H&E Equipment Services, Inc. priced a $1.25 billion issue of eight-year senior notes (B2/BB-) at par to yield 3 7/8% in a Monday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 4% area. Initial guidance was in the low 4% area.
The deal was heard to be playing to a $2.4 billion order book at 11:30 a.m. ET on Monday, a trader said.
BofA Securities Inc. had the books.
The Baton Rouge, La.-based heavy equipment manufacturing and services company plans to use the proceeds to fund the tender and/or redemption of its 5 5/8% senior notes due 2025 and for general corporate purposes.
| Issuer: | H&E Equipment Services, Inc.
|
| Amount: | $1.25 billion
|
| Maturity: | Dec. 15, 2028
|
| Securities: | Senior notes
|
| Bookrunner: | BofA Securities Inc.
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Spread: | 319 bps
|
| First call: | Dec. 15, 2023 at 101.938
|
| Equity clawback: | 40% at 103.875 until Dec. 15, 2023
|
| Trade date: | Nov. 30
|
| Settlement date: | Dec. 14
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 4% area
|
| Marketing: | Drive-by
|
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