NES Rentals announced yesterday that it began a cash tender offer and consent solicitation for its outstanding $150 million aggregate principal amount of 12 ¼-percent second lien senior secured notes due 2015. The company is soliciting consents from the holders of the notes to certain proposed amendments that would eliminate or modify restrictive covenants. The amendments will be explained in a supplemental indenture that is described in more detail in the Offer to Purchase.
The amendments will not be executed unless the company receives consents from a majority of the noteholders. The tender offer will expire midnight April 26.
Holders who tender their notes prior to 5 p.m. April 12, unless extended will receive $1,067.50 per $1,000 principal amount, including a consent payment of $7.50 per $1,000. The company intends to pay the total consideration plus accrued and unpaid interest. Holders who tender their notes after the consent date but prior to the expiration date will receive $1,060 per $1,000 principal amount.
The tender offer is subject to the satisfaction or waiver of certain conditions. Deutsche Bank Securities is acting as dealer manager and solicitation agent, and D.F. King & Co. is acting as tender agent and information agent for the tender offer.
NES Rentals, based in Chicago, is No. 10 on the RER 100.
