Fort Lauderdale, Fla.-based NationsRent Companies last week set the pricing for its previously announced cash tender offers and consent solicitations in respect of its outstanding 9 1/2-percent senior secured notes due 2010 and its 9 ½-percent senior notes due 2015.
The total consideration for the 2010 notes was determined as of 2 p.m., New York City time, on Aug. 15, 2006, assuming a payment date of Aug. 30, 2006 and using the yield of the 4-1/4 percent U.S. Treasury note due Oct. 31, 2007 (the 2010 reference security) plus a fixed spread of 50 basis points. The yield on the 2010 reference security, as calculated by Jefferies & Co., was 5.096 percent. Accordingly, the total consideration, excluding accrued and unpaid interest, for each $1,000 principal amount of 2010 notes validly tendered and not withdrawn at or prior to 5 p.m., New York City time, on July 31, 2006 (the consent deadline) is $1,086.52, which includes a consent payment of $30.
The total consideration for the 2015 notes was determined as of 2 p.m., New York City time, on Aug. 15, 2006, assuming a payment date of Aug. 30, 2006 and using the yield of the 3-7/8 percent U.S. Treasury note due May 15, 2010 (the 2015 reference security) plus a fixed spread of 50 basis points. The yield on the 2015 reference security, as calculated by Jefferies & Co., was 4.874 percent. Accordingly, the total consideration, excluding accrued and unpaid interest, for each $1,000 principal amount of 2015 notes validly tendered and not withdrawn at or prior to the consent deadline is $1,174.72, which includes a consent payment of $30.
The tender offers are scheduled to expire at 5 p.m. New York City time on Aug. 29, 2006, unless extended or earlier terminated.
The dealer managers for the offer are Jefferies & Co. and Citigroup Corporate and Investment Banking. The depositary for the offer is Wilmington Trust Co.
In July, Charlotte, N.C.-based Sunbelt Rentals announced that it would acquire NationsRent in a $1.05 billion transaction. The combined companies will be third-largest rental company in North America.
