H&E Equipment to shop $480 million 10-year issue

By Paul Deckelman

New York, Aug. 6 - H&E Equipment Services, Inc. was heard by high-yield sources Monday to be preparing to market a $480 million offering of 10-year senior notes via a short roadshow.

The roadshow is expected to begin Tuesday and run through Thursday, with pricing expected some time after that.

The bonds will be sold to qualified institutional buyers under Rule 144A with registration rights. They will have call protection for the first five years after issue.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC will be the joint book-running managers for the offering.

The sources said the notes are expected to gain a B3 rating from Moody's Investors Service and a B+ rating from Standard & Poor's.

H&E Equipment, Baton Rouge, La.-based company that leases and sells construction and industrial equipment, plans to use the proceeds from the deal, together with borrowings under its credit facility, to repurchase or redeem its $250 million of outstanding 8 3/8% senior notes due 2014, and to fund a special one-time cash dividend to company stockholders totaling about $246 million, or roughly $7 per share.

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