Algeco Scotsman extends roadshow for €1.42 billion four-part deal, drops unsecured euro tranche

By Paul A. Harris

Portland, Ore., Jan. 31 – Algeco Scotsman rejiggered its €1,415,000,000 equivalent offering of high-yield notes, paring a proposed unsecured euro-denominated tranche, according to market sources.

The roadshow for the deal – now coming in four tranches instead of the five that were included when marketing got underway – extends into the week ahead with a newly planned Friday stop on the West Coast of the United States.

Meanwhile stops in Amsterdam and Milan, which had been scheduled for Friday, are now scheduled to take place on Monday, and the deal is expected to price in the Feb. 5 week, sources say.

The secured portions remain unchanged. They include €1.12 billion equivalent in three tranches of senior secured notes (B2/B-/B+) from affiliate Algeco Scotsman Global Finance plc: dollar- and euro-denominated fixed-rate notes which become callable after two years at par plus 50% of the respective coupons, and euro-denominated floating-rate notes, which become callable after one year at 101.

However, the €295 million equivalent of 5.5-year senior unsecured fixed-rate notes (Caa1/CCC/CCC+) from affiliate Algeco Scotsman Global Finance 2 plc are expected to be issued in dollars only. A planned euro-denominated unsecured tranche has been abandoned.

The unsecured notes become callable after two years at par plus 50% of the coupons.

All four tranche sizes remain to be determined.

Global coordinator BofA Merrill Lynch will bill and deliver for the dollar-denominated secured notes. Global coordinator Deutsche Bank will bill and deliver for both tranches of unsecured notes. Global coordinator Goldman Sachs will bill and deliver for both tranches of euro-denominated secured notes. Barclays, Credit Suisse and ING are also joint global coordinators.

Proceeds from the Rule 144A and Regulation S deal, together with proceeds from an equity contribution, borrowings under a new ABL facility and cash on hand, will be used, among other things, to repay debt, including all debt outstanding under Algeco Scotsman's existing ABL facilities agreement, existing senior secured notes and existing senior unsecured notes.

Bonds being taken out with the proceeds of the new deal have been among the most active issues in the market, traders say.

Algeco Scotsman is based in Baltimore and provides modular space, secure portable storage solutions and remote workforce accommodation management.

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