LAS VEGAS--(BUSINESS WIRE)--Ahern Rentals, Inc. announced today that it has priced its offering of $420,000,000 aggregate principal amount of 9.50% Senior Secured Notes due 2018 (the “Notes”). The Notes will mature on June 15, 2018 unless earlier repurchased or redeemed in accordance with their terms. The company increased the size of the offering to $420,000,000 from $415,000,000.
The company is conducting the offering in connection with its exit from Chapter 11 bankruptcy under a reorganization plan, which also contemplates that the company will enter into a new secured credit facility and that existing shareholders will make an equity contribution of $5 million to the company. The net proceeds from the offering will be placed in escrow until the company exits bankruptcy. The company intends to use the net proceeds from the offering, along with borrowings under the new credit facility and the equity contribution, to repay its existing debtor-in-possession loan and its existing term loan, and to redeem outstanding senior secured notes due 2013. Any remaining proceeds will be used for other general corporate purposes. The sale of the Notes is expected to be completed on June 7, 2013, subject to market and other customary conditions.
The Notes are being offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933. The Notes have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act of 1933 and applicable state laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities, and does not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933.
About Ahern Rentals, Inc.
Ahern Rentals is an equipment rental company with 75 branches in 22 states. Through its network of equipment rental locations, it rents a full range of construction equipment, sells used rental equipment, new equipment, parts, supplies and related merchandise, and provides maintenance, repair and other services that supplement its rental activities. The types of equipment Ahern rents range from a fleet of high reach equipment and earth engaging units to hand tools. For more information about Ahern Rentals, visit http://www.ahern.com.