Loxam circulates early guidance in €810 million two-part notes offer; pricing Wednesday

By Paul A. Harris

Portland, Ore., March 28 – Paris-based equipment rental company Loxam SAS circulated early guidance in its €810 million two-part offering of high-yield notes, according to market sources.

The deal features €560 million of seven-year senior secured notes (preliminary BB-) whispered at 4¼% to 4¾% and €250 million of eight-year senior subordinated notes (preliminary B) whispered 6¼% to 6¾%.

The roadshow is set to last until Wednesday, with the notes to be priced thereafter.

Joint bookrunner Deutsche Bank will bill and deliver for the Rule 144A and Regulation S for life offering. Credit Agricole CIB, Natixis and SG CIB are also joint bookrunners.

The notes in both tranches come with three years of call protection. Special call provisions allow the issuer to redeem 10% of the notes in both tranches annually at 103 during the non-call periods.

The notes also feature three-year 45% equity clawbacks and 101% poison puts.

Proceeds will be used to repay the bridge facility related to the acquisition of England-based equipment rental company Lavendon Group, and to pay directly for the remaining shares of Lavendon, plus costs related to the acquisition.

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