New Issue: Nesco prices $280 million 11¾% five-year notes at 98.164 to yield 12¼%

By Paul A. Harris

Portland, Ore., April 5 - Nesco, LLC priced a $280 million issue of 11¾% five-year senior secured second-lien notes due April 15, 2017 (Caa1/B-/) at 98.164 to yield 12¼% on Thursday, according to an informed source.

Although there was no official price talk, yield guidance was 12%, according to a market source.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, PNC Capital Markets, Morgan Stanley & Co. LLC, Jefferies & Co. and Deutsche Bank Securities Inc. were the joint bookrunners.

Proceeds will be used to refinance the interim credit facility used to fund Platinum Equity's acquisition of Nesco, as well as to repay borrowings under the ABL facility and to fund a special dividend to shareholders.

Nesco is a Bluffton, Ind.-based provider of specialty rental equipment for the electric power transmission and distribution industry.

Issuer:	Nesco, LLC and Nesco Holdings Corp.
Face amount:	$280 million
Proceeds:	$274.86 million
Maturity:	April 15, 2017
Securities:	Senior secured second-lien notes
Bookrunners:	Bank of America Merrill Lynch, Wells Fargo Securities LLC, PNC Capital Markets, Morgan Stanley & Co. LLC, Jefferies & Co., Deutsche Bank Securities Inc.
Co-managers:	Capital Markets Ltd., Fortis Inc.
Coupon:	11¾%
Price:	98.164
Yield to worst:	12¼%
Call features:	Make-whole call at Treasuries plus 50 bps until April 15, 2014, then callable at a premium
Equity clawback:	35% at 111.75 until April 15, 2014
Change-of-control put:	101%
Trade date:	April 5
Settlement date:	April 11
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Distribution:	Rule 144A for life
Informal guidance:	12%
Marketing:	Roadshow

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