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EquipmentShare.com finalizes $640 million five-year notes with 9% coupon at 94.26 to yield 10½%
By Paul A. Harris
Portland, Ore., May 4 – EquipmentShare.com Inc. finalized pricing in its $640 million offering of five-year second-lien senior secured notes (B1/B-) on Thursday, according to market sources.
The deal is set to come with a 9% coupon at an original issue discount of 94.6 to yield 10½%.
The final coupon comes on top of coupon talk. The OID, however, comes more than $2.81 cheap to the cheap end of the 97.074 to 98.036 price talk. The 10½% yield, meanwhile, comes 75 basis points beyond the wide end of the 9½% to 9¾% yield talk.
Before hitting headwinds, the debut issuer’s deal came into the market early in the week with initial guidance in mid-to-high 8% area, and thus has undergone 163 bps to 200 bps of widening, sources say.
The $640 million size represents an increase from the previously revised size of $600 million. However, the deal was announced on Monday at a size of $750 million.
The Rule 144A and Regulation S notes, set to price later on Thursday, were held in the market overnight. They had previously been expected to price on Wednesday.
The 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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