RSC Equipment Rental said last week that it has priced an offering of $400 million aggregate principal amount of 10 percent senior secured notes due 2017. The company had previously announced a proposed offering of $300 million and the offering size increased to $400 million based on strong market demand. The senior secured notes are being co-issued by RSC Equipment Rental’s parent company RSC Holdings.
Net proceeds from the sale, after underwriting discounts will be $381.3 million and will be sold to qualified institutional buyers. The company plans to use $243.8 million of the net proceeds to repay the term loan portion of its senior secured asset-backed credit facility and $134 million to pay down outstanding borrowings under the ABL revolving facility.
Based in Scottsdale, Ariz., RSC Equipment Rentals is No. 2 on the RER 100.