EquipmentShare.com $750 million notes offering takes shape with covenant concessions, higher talk

By Paul A. Harris

Portland, Ore., May 2 – EquipmentShare.com Inc.’s $750 million offering of five-year second-lien senior secured notes (B1/B-) is shaping up on news that the debut high-yield issuer will make some covenant concessions to investors and bring more rate to bear upon the transaction, according to a sellside source.

Pricing discussions took place in the yield context of 9¼% to 9½% on Tuesday, the source said, noting that initial talk was in the mid-to-high 8% area.

The order book was up to $600 million on Tuesday afternoon, the sellsider said, adding that the concessions and higher pricing should suffice to get the deal done.

Pricing could come on Wednesday, the source added.

The Rule 144A and Regulation S notes become callable after two years at par plus 50% of the coupon.

Goldman Sachs & Co. LLC is the left bookrunner. Wells Fargo Securities LLC, Capital One Securities Inc., Citigroup Global Markets Inc., Fifth Third Securities Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America Inc. and Truist Securities Inc. are the joint bookrunners.

Regions Securities LLC and UBS Securities LLC are the co-managers.

The Columbia, Mo.-based provider of construction equipment and technologies plans to use the proceeds to pay off its term loan facility and its Central Trust Bank term loan, as well as to partially repay its ABL facility, and for general corporate purposes.

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