Alta Equipment Group Announces Pricing of Private Offering of $500 Million of Senior Secured Second Lien Notes due 2029
21 Mayo 2024 - 5:30PM
Alta Equipment Group Inc. (NYSE: ALTG) (“Alta” or the “Company”),
announced today that it has priced $500 million in aggregate
principal amount of its 9.000% senior secured second lien notes due
2029 (the “notes”) at an issue price of 97.094% of face amount in a
private offering (the “offering”) that is exempt from the
registration requirements of the Securities Act of 1933, as amended
(the “Securities Act”). The offering of the notes is expected to
close on June 5, 2024, subject to customary closing conditions.
The notes will be guaranteed by all of the Company’s domestic
subsidiaries and will be secured by a second lien on substantially
all of the assets of the Company and its subsidiaries. Concurrent
with the closing of the offering, the Company expects to amend and
extend its existing $485 million senior secured asset-based
revolving credit facility due 2026 (the “Existing ABL Facility”)
and $70 million floor plan facility due 2026 (the “Existing Floor
Plan Facility”) with a $520 million senior secured asset-based
revolving credit facility due 2029 (the “New ABL Facility”) and a
$90 million floor plan facility due 2029 (together with the New ABL
Facility, the “First Lien Facilities”). The First Lien Facilities
will be secured by a first-priority lien on the same assets
securing the notes. The Company intends to use the net proceeds
from the offering, together with the proceeds of new borrowings
under the First Lien Facilities, (i) to refinance a portion of the
Existing ABL Facility and the Existing Floor Plan Facility prior to
the amendments thereto, pay accrued and unpaid interest thereon,
and pay related fees and expenses thereto, (ii) to redeem all of
its outstanding 5.625% Senior Secured Second Lien Notes due 2026
(the “Existing Notes”), pay the premium, accrued and unpaid
interest thereon, and pay related fees and expenses thereto, and
(iii) for general corporate purposes to the extent there are any
remaining proceeds.
The notes and the related guarantees will be offered only to
persons reasonably believed to be qualified institutional buyers
pursuant to Rule 144A under the Securities Act and to
non-U.S. persons outside the United States in
reliance on Regulation S under the Securities Act. The offer and
sale of the notes and the related guarantees have not been
registered under the Securities Act or the securities laws of any
state or other jurisdiction and may not be offered or sold absent
registration or an applicable exemption from the registration
requirements under the Securities Act and any applicable securities
laws of any state or other jurisdiction.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any of the notes, nor shall there
be any sale of the notes in any state or jurisdiction in which such
offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. This press release is being issued pursuant to and in
accordance with Rule 135(c) under the Securities Act.
This press release does not constitute a notice of redemption
with respect to the Existing Notes.
Forward Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Alta’s actual results may
differ from their expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “could,” “should,” “believes,”
“predicts,” “potential,” “continue,” and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside Alta’s control and are difficult to predict. Factors that
may cause such differences include, but are not limited to: supply
chain disruptions, inflationary pressures resulting from supply
chain disruptions or a tightening labor market; negative impacts on
customer payment policies and adverse banking and governmental
regulations, resulting in a potential reduction to the fair value
of our assets; the performance and financial viability of key
suppliers, contractors, customers, and financing sources; economic,
industry, business and political conditions including their effects
on governmental policy and government actions that disrupt our
supply chain or sales channels; fluctuations in interest rates; the
market price for our equipment; collective bargaining agreements
and our relationship with our union-represented employees; our
success in identifying acquisition targets and integrating
acquisitions; our success in expanding into and doing business in
additional markets; our ability to raise capital at favorable
terms; the competitive environment for our products and services;
our ability to continue to innovate and develop new business lines;
our ability to attract and retain key personnel, including, but not
limited to, skilled technicians; our ability to maintain our
listing on the New York Stock Exchange; the impact of cyber or
other security threats or other disruptions to our businesses; our
ability to realize the anticipated benefits of acquisitions or
divestitures, rental fleet and other organic investments or
internal reorganizations; federal, state, and local government
budget uncertainty, especially as it relates to infrastructure
projects and taxation; currency risks and other risks associated
with international operations; and other risks and uncertainties
identified from time to time in the section entitled “Risk Factors”
in Alta’s annual report on Form 10-K and other filings with the
U.S. Securities and Exchange Commission. Alta cautions that the
foregoing list of factors is not exclusive, and readers should not
place undue reliance upon any forward-looking statements, which
speak only as of the date made. Alta does not undertake or accept
any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements to reflect any change
in its expectations or any change in events, conditions, or
circumstances on which any such statement is based.
About Alta Equipment Group
Inc.
Alta owns and operates one of the largest integrated equipment
dealership platforms in North America. Through our branch network,
the Company sells, rents, and provides parts and service support
for several categories of specialized equipment, including lift
trucks and other material handling equipment, heavy and compact
earthmoving equipment, crushing and screening equipment,
environmental processing equipment, cranes and aerial work
platforms, paving and asphalt equipment, other construction
equipment and allied products. Alta has operated as an equipment
dealership for 40 years and has developed a branch network that
includes over 85 total locations across Michigan, Illinois,
Indiana, Ohio, Pennsylvania, Massachusetts, Maine, Connecticut, New
Hampshire, Vermont, Rhode Island, New York, Virginia, Nevada and
Florida and the Canadian provinces of Ontario and Quebec. Alta
offers its customers a one-stop-shop for their equipment needs
through its broad, industry-leading product portfolio.
Contacts
Investors:Kevin Inda SCR Partners,
LLCkevin@scr-ir.com (225) 772-0254
Media:Glenn MooreAlta Equipment
glenn.moore@altg.com(248) 305-2134
Alta Equipment (NYSE:ALTG)
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