FORT LAUDERDALE, Fla. — NationsRent recently completed the sale of $250 million in 9.5 percent senior secured notes due 2010. The notes were offered to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, to a limited number of institutional accredited investors and to persons outside the United States. The proceeds will be used to repay amounts outstanding under the company's existing senior revolving credit facility, purchase money obligations, equipment leases and general corporate purposes.
“These long-term notes, together with our cash position and cash generated from operations, will provide us with a solid capital structure and liquidity to execute our strategic initiatives,” said CEO Jeff Putman. “I believe investors found the structure of the offering, the company's restructured balance sheet, our new management team, and the strong equity sponsorship particularly appealing.”
The offering was originally expected to raise $225 million, according to executive vice president and chief financial officer Tom Hoyer. “But the offering was increased to $250 million to meet strong demand,” he said.
The notes are rated B2 by Moody's and BB- by Standard & Poors and are secured by NationsRent's rental equipment fleet.
The company also hired former Ameco executives Charles Snyder and John Malone, as executive vice president of fleet and asset management and executive vice president, administration, respectively. Both men served in executive capacities at Ameco, where Snyder served as CEO for several years.
The Fort Lauderdale, Fla.-based company also recently hired Catherine Crewson as director of transportation services. Her extensive background in fleet management, financial and system controls and strategic partnership development will help the company manage its delivery fleet, valued at more than $60 million. Crewson most recently served as fleet manager of Tyco International where she managed the daily operations of more than 8,000 light-duty vehicles.
NationsRent is No. 6 on the RER 100. It has 266 locations in 26 states, including 98 rental departments at Lowe's Home Improvement locations.
