Cooper Equipment Rentals Limited has successfully closed a private placement offering of C$250 million aggregate principal amount of 7.45 percent senior unsecured notes due July 4, 2029.
The notes are general unsecured obligations of Cooper, which rank equal in right of payment with all other existing and future unsecured indebtedness of the company. The notes are effectively subordinated to all secured indebtedness incurred from time to time by Cooper, including indebtedness under the company’s asset-based loan credit facility.
The notes offering was underwritten by a syndicate of underwriters led by RBC Capital Markets and Scotiabank, as joint bookrunners, and also includes Wells Fargo Securities Canada, CIBC Capital Markets and BMO Capital Markets, as co-managers.
The notes have been assigned a provisional rating of BB (low) with a stable outlook by DBRS Limited.
Cooper intends to use the net proceeds from the offering to repay a portion of the indebtedness outstanding under the company’s ABL credit facility and for the payment of a shareholder distribution.
The notes have been offered for sale in each of the provinces of Canada to "accredited investors" on a private placement basis in accordance with Canadian securities laws, and in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the U.S. Securities Act.
