PHOENIX - WillScot (NASDAQ:WSC) Mobile Mini (NASDAQ:MINI_old) Holdings Corp. (NASDAQ:WSC), a leading provider of modular space and portable storage solutions, announced today the issuance of $500 million in senior secured notes due 2029. The notes, carrying an interest rate of 6.625%, were issued by its subsidiary, Williams Scotsman, Inc., and are backed by guarantees from certain affiliates.
The notes will mature on June 15, 2029, with semiannual interest payments starting December 15, 2024. These securities are guaranteed on a senior secured basis by the subsidiary's parent company, Williams Scotsman Holdings Corp., and certain other subsidiaries.
In terms of financial flexibility, the company may redeem up to 40% of the notes before June 15, 2026, using proceeds from equity offerings at a price above their principal amount. Additionally, up to 10% of the notes can be repurchased annually at a slight premium until the same date. Post-June 15, 2026, the notes can be redeemed at decreasing premiums, eventually reaching par value.
A change of control clause requires the company to offer to repurchase the notes at 101% of their principal amount plus accrued interest. The agreement also includes covenants limiting the company's ability to incur additional debt, pay dividends, sell assets, and engage in certain other transactions without meeting specific conditions.
The issuance of these notes is part of WillScot Mobile Mini's broader capital management strategy and aligns with its long-term financial planning. The company is not a guarantor of the notes, which are secured by a second-priority interest in most assets of Williams Scotsman, Inc. and the guarantors, subject to customary exclusions.
This financial move comes amid a dynamic market environment and reflects WillScot Mobile Mini's proactive approach to managing its capital structure. The transaction was based on a press release statement and is expected to provide the company with increased financial flexibility to pursue strategic initiatives and growth opportunities.
In other recent news, WillScot Mobile Mini Holdings Corp. has announced a plan to offer $500 million in senior secured notes due in 2029. The proceeds from this offering will be used to repay approximately $493.5 million of outstanding borrowings under its existing asset-based lending (ABL) credit facility. In addition, the company reported strong financial results in the first quarter of 2024, with revenue totaling $587 million and leasing revenue at $461 million.
Analysts from Barclays (LON:BARC) Capital Inc. and DA Davidson have rated the company's stock as "Overweight" and "Buy" respectively, while analysts from Oppenheimer and Stifel have adjusted their price targets due to revised financial projections. The company also achieved "certified substantial compliance" with the Federal Trade Commission (FTC) Second Request, a significant milestone that could bolster investor confidence. These are the recent developments for WillScot Mobile Mini.
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