H&E Equipment Services, Inc. Announces Pricing of Senior Notes Offering
August 18 2017 - 7:00AM
Business Wire
H&E Equipment Services, Inc. (NASDAQ: HEES) (the
“Company”) today announced the pricing of $750,000,000 aggregate
principal amount of its senior notes due 2025 (the “Notes”) in an
unregistered offering (the “Offering”). The Notes will pay interest
semi-annually at a rate of 5.625% per annum. The Notes will be
senior unsecured obligations of the Company and will be guaranteed
by certain of its domestic restricted subsidiaries. The Offering is
expected to close on August 24, 2017, subject to the satisfaction
of customary closing conditions.
The Company expects to use the net proceeds of the Notes to pay
the consideration payable to purchase our existing 7% senior notes
due 2022 (the “Existing Notes”) tendered and accepted for purchase
in the tender offer commenced for the Existing Notes today or
otherwise redeem, repurchase or discharge the Existing Notes, to
pay fees and expenses incurred in connection with the foregoing and
the Offering and to repay a portion of the amounts outstanding
under our existing ABL credit facility.
The Notes and related guarantees are being offered in a private
placement, solely to qualified institutional buyers in reliance on
Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”), or outside the United States to persons other
than “U.S. persons” in compliance with Regulation S under the
Securities Act. The Notes and related guarantees have not been
registered under the Securities Act or the securities laws of any
other jurisdiction and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements.
This press release is neither an offer to sell, nor a
solicitation of an offer to buy, any securities and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale is unlawful. The securities
described herein have not been and will not be registered under the
Securities Act of 1933, as amended (the “Securities Act”), or any
state securities laws, and unless so registered, may not be offered
or sold in the United States except pursuant to an exemption from
the registration requirements of the Securities Act, and applicable
state securities laws.
About H&E Equipment Services, Inc.
The Company is one of the largest integrated equipment services
companies in the United States with 79 full-service facilities
throughout the West Coast, Intermountain, Southwest, Gulf Coast,
Mid-Atlantic and Southeast regions. The Company is focused on heavy
construction and industrial equipment and rents, sells and provides
parts and services support for four core categories of specialized
equipment: (1) hi-lift or aerial platform equipment;
(2) cranes; (3) earthmoving equipment; and
(4) industrial lift trucks. By providing equipment rental,
sales, on-site parts, repair and maintenance functions under one
roof, the Company is a one-stop provider for its customers’ varied
equipment needs. This full service approach provides the Company
with multiple points of customer contact, enabling it to maintain a
high quality rental fleet, as well as an effective distribution
channel for fleet disposal and provides cross-selling opportunities
among its new and used equipment sales, rental, parts sales and
services operations.
Forward-Looking Statements
Statements contained in this press release that are not
historical facts, including statements about H&E’s beliefs and
expectations, are “forward-looking statements” within the meaning
of the federal securities laws. Statements that are not historical
facts, including statements about our beliefs and expectations are
forward-looking statements. Statements containing the words “may,”
“could,” “would,” “should,” “believe”, “expect,” “anticipate,”
“plan,” “estimate,” “target,” “project,” “intend,” “foresee” and
similar expressions constitute forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties, which could cause actual results to differ
materially from those contained in any forward-looking statement.
Such factors include, but are not limited to, the following: (1)
possible completion of the offering and tender offer, the
prospective impact of a note offering or tender offer, plans to
repay certain indebtedness (including the terms and success of such
repayment) and the use of proceeds of the offering; (2) general
economic conditions and construction and industrial activity in the
markets where we operate in North America; (3) our ability to
forecast trends in our business accurately, and the impact of
economic downturns and economic uncertainty in the markets we
serve; (4) the impact of conditions in the global credit and
commodity markets and their effect on construction spending and the
economy in general; (5) relationships with equipment suppliers; (6)
increased maintenance and repair costs as we age our fleet and
decreases in our equipment’s residual value; (7) our indebtedness;
(8) risks associated with the expansion of our business and any
potential acquisitions we may make, including any related capital
expenditures; (9) our possible inability to integrate any
businesses we acquire; (10) competitive pressures; (11) security
breaches and other disruptions in our information technology
systems; (12) adverse weather events or natural disasters; (13)
compliance with laws and regulations, including those relating to
environmental matters and corporate governance matters; and (14)
other factors discussed in our public filings, including the risk
factors included in the Company’s most recent Annual Report on Form
10-K. Investors, potential investors and other readers are urged to
consider these factors carefully in evaluating the forward-looking
statements and are cautioned not to place undue reliance on such
forward-looking statements. Except as required by applicable law,
including the securities laws of the United States and the rules
and regulations of the Securities and Exchange Commission, we are
under no obligation to publicly update or revise any
forward-looking statements after the date of this release. These
statements are based on the current beliefs and assumptions of
H&E’s management, which in turn are based on currently
available information and important, underlying assumptions.
H&E is under no obligation to publicly update or revise any
forward-looking statements after this press release, whether as a
result of any new information, future events or otherwise.
Investors, potential investors, security holders and other readers
are urged to consider the above mentioned factors carefully in
evaluating the forward-looking statements and are cautioned not to
place undue reliance on such forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170818005070/en/
H&E Equipment Services, Inc.Leslie S. Magee,
225-298-5261Chief Financial Officerlmagee@he-equipment.comorKevin
S. Inda, 225-298-5318Vice President of Investor
Relationskinda@he-equipment.com
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