H&E Equipment lacks consents to amend 7% notes; solicitation expires

By Susanna Moon

Chicago, May 16 – H&E Equipment Services, Inc. said it ended its solicitation for its 7% senior notes due 2022 without having obtained the needed consents.

The proposed amendment would have provided an additional dividend basket under the restricted payment covenant of the notes indenture.

“The company’s determination not to proceed with the consent solicitation is not anticipated to have any effect on the company’s current plans to continue paying regular quarterly cash dividends on its common stock; however, the declaration of any subsequent dividends is discretionary and will be subject to a final determination by the board of directors each quarter after its review of, among other things, business and market conditions,” according to a company update.

The consent solicitation ended at 5 p.m. ET on May 11, extended from May 4. The record date was 5 p.m. ET on April 20.

The proposal required consents from holders of a majority of the notes.

The cash consent payment would have been $7.50 per $1,000 principal amount.

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

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.