Algeco Scotsman sets talk in €1.42 billion equivalent four-part deal; books close Monday

By Paul A. Harris

Portland, Ore., Feb. 2 – Algeco Scotsman set price talk in its restructured €1,415,000,000 equivalent four-part offering of high-yield notes, according to a market source.

Algeco Scotsman Global Finance plc is selling €1.12 billion equivalent of five-year senior secured notes (B2/B-/B+) in three tranches, which are talked as follows:

• Euro-denominated fixed-rate notes are talked at 6½% to 6¾%, wide to early guidance in the 6% area;

• Dollar-denominated fixed-rate notes are talked in the 8% area; initial guidance on the dollar-denominated secured notes had them coming 150 basis points to 200 bps behind the euro-denominated secured notes; and

• Euro-denominated floating-rate notes are talked at Euribor plus 600 bps to 625 bps, wider than initial guidance in the Euribor plus 600 bps area.

The fixed-rate notes become callable after two years at par plus 50% of the coupons. The floating-rate notes become callable after one year at 101.

Algeco Scotsman Global Finance 2 plc is selling €295 million equivalent of dollar-denominated 5.5-year senior unsecured fixed-rate notes (Caa1/CCC/CCC+) talked to yield in the 10% area, in line with early guidance.

In a restructuring of the deal, a proposed euro-denominated tranche of unsecured notes was withdrawn from the market.

Tranche sizes remain to be announced.

Books close on Monday, the source said.

Global coordinator BofA Merrill Lynch will bill and deliver for the dollar-denominated secured notes. Global coordinator Deutsche Bank will bill and deliver for the 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.

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

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