Moody’s: Mini Mobile notes B2

Moody's Investors Service said it affirmed the B1 corporate family and the B2 senior unsecured ratings of Mobile Mini, Inc.

The agency also said it assigned a B2 senior unsecured rating to its proposed eight-year $250 million senior notes.

The outlook is stable.

Moody's said it expects to withdraw the rating on the existing notes once the new debt offering is consummated and the notes are paid off.

Mobile Mini's refinancing of its existing $200 million senior notes with the original maturity of 2020 will be leverage-neutral for the company, given that it is planning to apply the majority of the proceeds from the incremental borrowing of $50 million to the outstanding principal balance under its ABL facility, the agency said.

The refinancing improves Mobile Mini's funding profile by extending the maturity of the notes until 2024, Moody’s said.

The ratings also consider Mobile Mini's strong earnings and long-term cash flow generating capacity from its investment in long-lived mobile storage units, the agency said, as well its strong market position in the portable storage leasing business in the United States and United Kingdom.

The ratings are constrained by its high leverage, which has not meaningfully decreased since the debt-financed acquisition of Evergreen Tank Solutions in December 2014, Moody’s said.

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