Ashtead to price $400 million 10-year secured notes on Wednesday

By Paul A. Harris

Portland, Ore., Sept. 10 – Ashtead Capital, Inc., a wholly owned subsidiary of Ashtead Group, plans to price a $400 million offering of 10-year second priority senior secured notes on Wednesday following a late-morning conference call with investors, according to a market source.

The deal is coming with early guidance in the 5˝% area, according to a high-yield portfolio manager.

Moody’s Investors Service is expected to assign its Ba3 rating to the notes, which would represent an upgrade from the present B1 rating. Standard & Poor’s is expected to assign its BB- rating to the notes.

Deutsche Bank Securities Inc., Citigroup Global Markets, J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, RBS Securities, Lloyds TSB, Barclays, HSBC and MUFG are the joint bookrunners for the Rule 144A for life offering.

The notes come with five years of call protection and feature a three-year 35% equity clawback and a 101% poison put.

The London-based equipment rental company plans to use the proceeds to repay its ABL facility.

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