Issue of Debt

RNS Number : 3604V

Ashtead Group PLC

12 December 2013

 



ASHTEAD GROUP PLC

PRICING OF $400M OF SECOND PRIORITY SENIOR SECURED NOTES

Further to the announcement regarding the add-on notes offering issued yesterday, Ashtead Group plc ("Ashtead" or the "Company") announces the pricing of an increased offering of $400 million aggregate principal amount of 6.50% second priority senior secured notes due 2022 (the "New Notes") by Ashtead Capital, Inc., an indirect wholly owned subsidiary of Ashtead, at an issue price of 106% of the principal amount of the New Notes. The offering is expected to close on 17 December 2013, subject to customary closing conditions.

Ashtead's chief executive, Geoff Drabble, commented:

"We are delighted with the support our new offering has commanded from investors.  Good credit markets have enabled us to fix the cost of a further tranche of our debt at attractive long-term rates and extend our average debt maturities beyond 6 years. This enhances the flexibility of our debt package and further strengthens our balance sheet."

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1.   The New Notes will be fully and unconditionally guaranteed on a senior secured basis by Ashtead and substantially all of Ashtead's material direct and indirect subsidiaries.

2.   Ashtead intends to use the net proceeds of the offering to repay a portion of the outstanding amounts borrowed under its first priority senior secured credit facility and to pay related fees and expenses.

3.   The New Notes will be offered in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to the exemption from registration under Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States only to non-U.S. investors pursuant to Regulation S under the Securities Act. The New Notes and the related guarantees have not been and will not be registered under the Securities Act or any state securities laws and may not be offered, sold or delivered in the United States unless registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available.

4.   This release shall not constitute an offer to sell or a solicitation of an offer to purchase the securities described herein or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

5.   Cautionary Statement Regarding Forward-Looking Information:   This release includes forward-looking statements. These statements relate to our future prospects, developments and business strategies. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will" and similar terms and phrases, including references to assumptions. These forward-looking statements include all matters that are not historical facts, including the statements concerning completion of the offering of the New Notes and application of the net proceeds therefrom. Forward-looking statements are not guarantees of future performance and actual results may differ significantly from those predicted or suggested by the forward-looking statements contained in this release. The information contained in this release is subject to change without notice and the Company assumes no responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.

6.   This communication is directed only to persons who (i) are persons falling within Article 19(5) ("Investment professional") of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii) are persons falling within Article 49(2)(a) to (d) ("High net worth companies, unincorporated associations, etc.") of the Financial Promotion Order, (iii) are outside the United Kingdom, (iv) are persons falling within Article 43(2) of the Financial Promotion Order ("Members and creditors of certain bodies corporate"), or (v) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any Securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons").  This communication is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons.  Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.

7.   FCA/Stabilisation

Enquiries:

Geoff Drabble               Chief executive              )

                                                                         )          [phone]

Suzanne Wood              Finance director             )

Brian Hudspith              Maitland                                   [phone]

 

END

 

 

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