Herc Holdings (HRI), an equipment rental supplier, said after markets closed on Monday that it has priced $1.2 billion of 5.5% senior notes due 2027 in a private offering.
The size of the offering was increased by $200 million from the previously announced offering size of $1 billion.
The closing of the offering is expected to occur on or about July 9.
The notes will be senior unsecured obligations of the company and interest will be payable semi-annually in arrears.
The notes will be guaranteed on a senior unsecured basis, subject to limited exceptions, by the company’s current and future domestic units, including Herc Rentals.
The net proceeds from the sale of the notes are expected to be used to redeem all $864.5 million of Herc’s outstanding senior secured second-priority notes, to partially repay indebtedness outstanding under Herc’s asset-backed revolving credit agreement and to pay related fees and expenses.
Following the offering, the company expects to refinance the credit facility in order to add Herc Holdings as a borrower, extend the maturity date from 2021 to 2024 and allow the US borrowers to borrow thereunder based on the value of assets owned by Canadian subsidiaries that are included in the borrowing base.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.