Nesco Holdings talks $920 million eight-year notes to yield 5¾%-6%; pricing Wednesday

By Paul A. Harris

Portland, Ore., March 17 – Nesco Holdings II, Inc. talked its $920 million offering of eight-year second-lien notes (B2/B) to yield 5¾% to 6%, according to market sources.

Official talk comes tight to initial guidance in the low 6% area.

Books close at 3 p.m. ET on Wednesday, and the deal is set to price thereafter. That represents an acceleration of previously announced timing, which had the deal in the market until Thursday.

BofA Securities Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Blackstone, BMO Capital Markets Corp., Stifel Nicolaus & Co. Inc., CIBC World Markets Corp., Fifth Third Securities Inc., MUFG, Oppenheimer & Co. Inc., PNC Capital Markets LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback and a 101% poison put.

The Fort Wayne, Ind.-based specialty equipment rental business plans to use the proceeds plus cash on hand, borrowings under a new ABL facility and proceeds from the subscription and the supplemental equity financing, to finance the acquisition of Custom Truck.

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