H&E Equipment seeks consents to amend dividend basket under 7% notes

By Marisa Wong

Morgantown, W.Va., April 21 – H&E Equipment Services, Inc. said it has begun a consent solicitation to amend its 7% senior notes due 2022.

The company is asking holders of record as of 5 p.m. ET on April 20 to approve a proposed amendment to the indenture governing the notes.

The proposal requires consents from holders of a majority in principal amount of the notes to take effect.

The consent solicitation will expire at 5 p.m. ET on May 4.

The company is offering a cash payment equal to $7.50 per $1,000 principal amount of notes for which consents have been delivered.

Consents may be revoked at any time prior to the date a supplemental indenture is executed and becomes effective.

Proposed amendment

The amendment would provide for a dividend basket totaling $50 million per calendar year under the restricted payments covenant of the indenture, as long as, at the time of declaration of the dividend, the leverage ratio does not exceed 3.5 times.

The aggregate amount of dividends paid by the company under the new dividend basket would reduce on a dollar-for-dollar basis the cumulative amount available to the company for restricted payments under the “grower” basket of the indenture.

Under the current terms of the indenture, the company may only pay dividends if it meets specified conditions and has availability under the “grower” basket or if there is availability under one of the other baskets.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-2494) is the solicitation agent. D.F. King and Co., Inc. is the information and tabulation agent.

H&E is a heavy construction and industrial equipment services company based in Baton Rouge, La.

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