By Paul A. Harris
Portland, Ore., May 4 – EquipmentShare.com Inc. priced a $640 million issue of 9% five-year second-lien senior secured notes (B3/B-) at 94.26 to yield 10½% on Thursday, according to market sources.
The final coupon came on top of coupon talk. The OID, however, came more than $2.81 cheap to the cheap end of the 97.074 to 98.036 price talk. The 10½% yield, meanwhile, came 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 notes were held in the market overnight. They had previously been expected to price on Wednesday.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Wells Fargo Securities, LLC, Capital One Securities, Inc., Citigroup Global Markets Inc., Fifth Third Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc. and Truist Securities, Inc.
The Columbia, Mo.-based provider of construction equipment and technologies plans to use the proceeds plus cash on hand repay and terminate its term loan facility and repay and terminate its Central Trust Bank term loan.
| Issuer: | EquipmentShare.com Inc.
|
| Amount: | $640 million, upsized from $600 million after previously downsizing from $750 million
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| Issue: | Senior secured second-lien notes
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| Maturity: | May 15, 2028
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Wells Fargo Securities, LLC, Capital One Securities, Inc., Citigroup Global Markets Inc., Fifth Third Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc. and Truist Securities, Inc.
|
| Co-managers: | Regions Securities LLC and UBS Securities LLC
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| Coupon: | 9%
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| Price: | 94.26
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| Yield: | 10½%
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| Spread: | 715 bps
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| First call: | May 15, 2025 at 106.75
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| Trade date: | May 4
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| Settlement date: | May 9
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| Ratings: | Moody’s: B3
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 9% coupon at 97.074 to 98.036 to yield 9½% to 9¾%
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| Marketing: | Roadshow
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