NES Rental Holdings plans to sell $250 million of seven-year notes as investors expect total returns on high-yield, high-risk bonds to outperform Treasury securities for the second straight year, Businessweek is reporting. The NES notes may yield about 11.5 percent to 11.75 percent, according to a person familiar with the sale. Proceeds will be used to refinance existing debt.
The source told Businessweek that NES is marketing senior secured second-lien notes. The company is expected to reduce debt under its asset-backed loan revolving credit facility and repay its existing second-lien term loan.
The report added that crane rental giant Maxim Crane Works plans to sell $250 million of 5-year senior notes.
