ALGECO ANNOUNCES PRICING OF €125,000,000 SENIOR SECURED NOTES OFFERING
LONDON (November 29, 2018) – Algeco Global S.à r.l. (“Algeco Global” and, together with its subsidiaries, the “Algeco Group” or the “Group”), today announced that it has successfully priced a notes offering by one of its subsidiaries, Algeco Global Finance plc (the “Issuer”).
The Issuer priced its offering of senior secured notes (the “Additional Notes”), which consist of (i) €85,000,000 aggregate principal amount of its 6½ senior secured fixed rate notes due 2023 at an issue price of 98.25% and (ii) €40,000,000 senior secured floating rate notes due 2023 at an issue price of 98.5% with a coupon of three-month EURIBOR plus 625 basis points per annum, reset quarterly. The Additional Notes will be issued under the indenture governing the Issuer’s 6.25% senior secured euro notes due 2023, 8% senior secured U.S. dollar notes due 2023 and senior secured floating rate notes due 2023. The offering of the Additional Notes is expected to close on December 3, 2018. There can be no assurance that the offering of the Additional Notes will be completed.
Algeco Group intends to use the proceeds of the Additional Notes to (i) repay the entire amounts outstanding under certain existing sale-leaseback agreements of the Group together with accrued and unpaid interest (€96 million), (ii) fund cash to the Group’s balance sheet for general corporate purposes (€21.9 million) and (iii) pay fees and expenses (€5 million). The actual amount of debt to be repaid and fees and expenses on the issue date of the Additional Notes may vary from these amounts and any increase in the amount of debt to be repaid or fees and expenses on the issue date will reduce the amount of cash to be funded to the Group’s balance sheet.
The Additional Notes are being offered in a private placement transaction to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. The Additional Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Algeco is the leading global business services provider focused on modular space, secure portable storage solutions, and remote workforce accommodation management. Headquartered in London, as of September 30, 2018, Algeco had operations in 24 countries with approximately 241,000 modular space and portable storage units and 15,800 remote accommodations rooms. The company operates as Algeco in Europe, Elliott in the United Kingdom, Ausco in Australia, Portacom in New Zealand, Algeco Chengdong in China and Target Lodging in North America.
Cautionary Notice Regarding Forward Looking Statements
This press release contains statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as “forward-looking statements,” particularly those statements concerning expectations regarding the use of proceeds from the offering. A number of risks and uncertainties could cause our actual results to differ materially from current projections, forecasts, estimates and expectations relating to us. Any or all of these forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors, many of which are beyond our control.
This press release shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Important Regulatory Notice
This announcement contains information that prior to its disclosure may have constituted inside information under European Union Regulation 596/2014 on market abuse.
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