8 April, 2004
Pricing of high yield bond
Ashtead Group plc is pleased to confirm that the High Yield Bond offering it announced on 29 March 2004 for which Citigroup and Banc of America Securities Limited had been appointed joint underwriters and managers, has now been priced at a coupon of 12%, raising £120m.
The Company expects closing and funding of the offering to occur, subject to customary conditions, on or about 16 April 2004. As agreed with the Group's existing senior debt providers, the net proceeds of the offering will be principally applied to reduce the balance outstanding under the Group's existing committed senior secured debt facilities of US$200m (£110.5m).
On closing of the transaction the Company's existing senior debt providers have committed to extend the maturity of their remaining facilities to 30 September 2007. The weighted average maturity of the Company's debt facilities would then be approximately five years and the weighted average interest rate payable under those facilities would be approximately 7%.
The notes have been offered only to qualified institutional buyers in the United States under Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and certain investors outside of the United States in reliance on Regulation S under the Securities Act. The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy the notes.
Application will be made to the UK Listing Authority for the Bonds to be listed in London.