NES Rentals holders tender $84.81 million 12¼% notes by consent date

By Angela McDaniels

Tacoma, Wash., April 17 - NES Rentals Holdings, Inc. had received tenders for $84,806,000 principal amount, or 56.54%, of its $150 million of 12¼% second-lien senior secured notes due 2015 as of 5 p.m. ET on April 16, which was the consent date in the company's tender offer and consent solicitation.

All of the notes tendered by the consent date have been accepted for purchase. The settlement date for these notes was expected to be April 17, according to a company news release.

The tender offer began April 1 and will continue until 11:59 p.m. ET on April 26.

All notes that are not purchased in the offer will be redeemed on May 17. The redemption price will be $1,061.25 per $1,000 principal amount of notes plus accrued interest.

The purchase price in the tender offer is $1,067.50 per $1,000 principal amount of notes plus accrued interest. This price includes a consent payment of $7.50 per $1,000 principal amount of notes tendered by the consent date.

The company is soliciting consents to some proposed amendments that would eliminate or modify substantially all of the restrictive covenants, some events of default and related provisions contained in the indenture governing the notes and release the collateral that secures the notes.

The company needs consents from holders of at least a majority of the outstanding notes to make the amendments and from holders of at least two-thirds of the outstanding notes to release the collateral.

Holders who tender notes are deemed to consent to the proposed amendments, and holders who consent are required to tender their notes.

The tender offer was subject to the consummation of a proposed refinancing transaction yielding enough proceeds to fund the tender offer, the subsequent redemption and the repayment in full of the company's second-lien term loan due 2014. These conditions have been satisfied.

The company priced an upsized $300 million issue of five-year senior secured second-lien notes (Caa2/CCC+/) at par to yield 7 7/8% on April 12.

The dealer manager and solicitation agent is Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527), and the tender agent and information agent is D.F. King & Co., Inc. (800 829-6551 or 212 269-5550).

NES is an equipment rental company based in Chicago.

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