WernerCo to sell $400 million five-year secured first-lien notes; whisper 11¾%-12%

By Abigail W. Adams

Portland, Me., May 23 – WernerCo subsidiaries Werner FinCo LP and Werner FinCo, Inc. are in the market with $400 million of five-year senior secured first-lien notes with pricing expected on Wednesday, according to a market source.

Early guidance is for a yield in the 11¾% to 12% area.

The notes carry two years of call protection.

J.P. Morgan Securities LLC is leading the Rule 144A and Regulation S for life offering.

The capital raise is coming concurrently with an exchange offer and consent solicitations.

The company concurrently launched an exchange for any and all outstanding 8¾% senior notes due 2025 for new junior lien senior secured notes due 2028 and consent solicitations to eliminate substantially all restrictive covenants in the 2025 notes, according to a company news release.

Approximately 81% of holders of the 2025 notes have signed support agreements for the consent solicitations and agreed to tender their notes in the exchange.

Pricing of the exchange notes will be determined by the pricing of the first-lien notes.

WernerCo is an Itasca, Ill.-based manufacturer and distributor of fall protection and light-duty construction equipment and secure storage systems.

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