United Site Services downsizes to $750 million, talks eight-year notes in 8% area; pricing Thursday

By Paul A. Harris

Portland, Ore., Nov. 3 – PECF Intermediate Holding III Corp. downsized its two-part offering of high-yield notes backing the acquisition of United Site Services Co. (USS) by Platinum Equity to $750 million from $1.3 billion, according to market sources.

A proposed $550 million secured notes tranche was shifted to the concurrent term loan.

Price talk on the remaining $750 million tranche of eight-year senior unsecured notes (Caa2/CCC) is set in the 8% area, at the wide end of early guidance in the high 7% area to 8%.

Commitments are due at noon ET on Thursday, and the deal is set to price thereafter.

BofA Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc. and Jefferies LLC are the joint bookrunners.

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

With the shift of proceeds, the term loan increased to $1.8 billion from $1.25 billion.

Proceeds will be used to fund the acquisition and refinance debt.

USS is a Westborough, Mass.-based portable toilet rental company.

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