Alta Equipment Group Announces Pricing of Upsized Private Offering of $315 Million of Senior Secured Second Lien Notes due 2026
March 24 2021 - 5:18PM
Business Wire
Alta Equipment Group Inc. (NYSE: ALTG) (“Alta” or the
“Company”), announced today that it has priced $315 million in
aggregate principal amount of its 5.625% senior secured second lien
notes due 2026 (the "notes") in a private offering (the "offering")
that is exempt from the registration requirements of the Securities
Act of 1933, as amended (the "Securities Act"). This represents an
increase of $15 million from the previously announced offering of
$300 million. The offering of the notes is expected to close on
April 1, 2021, subject to customary closing conditions.
The notes will be guaranteed by all of the Company’s
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 and its subsidiaries
expect to refinance the Company’s senior credit obligations by
entering into a $350 million amended and restated credit agreement
and a $40 million amended and restated floor plan financing
agreement (together, the “First Lien Facilities”), which agreements
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, to repay certain of its current
outstanding indebtedness, to pay fees and expenses incurred in
connection with the offering and, to the extent there are remaining
proceeds, for general corporate purposes.
The notes have not been and will not be registered under the
Securities Act, or the securities laws of any other place. Unless
they are registered, the notes may be offered only in transactions
that are exempt from registration under the Securities Act and
applicable state securities laws. The notes will be offered by the
initial purchasers of the notes only to persons reasonably believed
to be qualified institutional buyers under Rule 144A and to
non-U.S. persons outside the United States in reliance on
Regulation S under the Securities Act.
This press release is for informational purposes only and does
not constitute an offer to sell, or a solicitation of an offer to
buy, nor shall there be any sale of the notes in any state or
jurisdiction in which such offer, solicitation or sale is unlawful.
Any offers of the notes will be made only by means of a private
offering memorandum. This notice is being issued pursuant to and in
accordance with Rule 135c under the Securities Act.
Forward Looking Statements
This press release includes certain statements that may
constitute “forward-looking statements” for purposes of the federal
securities laws. Forward-looking statements include, but are not
limited to, statements that refer to projections, forecasts or
other characterizations of future events or circumstances,
including any underlying assumptions. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “would” and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. These forward-looking
statements include any statements regarding the intended use of
proceeds from the notes, statements regarding refinancing our
current credit obligations and statements regarding the closing of
the note offering. These forward-looking statements are subject to
various risks, uncertainties, assumptions, or changes in
circumstances that are difficult to predict or quantify.
Accordingly, there are or will be important factors that could
cause actual outcomes or results to differ materially from those
indicated in these statements. These factors include, but are not
limited to, the risks and uncertainties identified in this
presentation or indicated from time to time in the section entitled
“Risk Factors” in our annual report on Form 10-K and other filings
with the U.S. Securities and Exchange Commission (the “SEC”). The
Company 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.
We do 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, except as required by law.
About Alta Equipment Group
Alta owns and operates one of the largest integrated equipment
dealership platforms in the U.S. Through its branch network, the
Company sells, rents, and provides parts and service support for
several categories of specialized equipment, including lift trucks
and aerial work platforms, cranes, earthmoving equipment and other
material handling and construction equipment. Alta has operated as
an equipment dealership for 36 years and has developed a branch
network that includes 55 total locations across Michigan, Illinois,
Indiana, New England, New York, Virginia and Florida. Alta offers
its customers a one-stop-shop for their equipment needs through its
broad, industry-leading product portfolio.
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version on businesswire.com: https://www.businesswire.com/news/home/20210324005980/en/
Investors: Bob Jones/Taylor Krafchik Ellipsis
IR@altaequipment.com (646) 776-0886
Media: Glenn Moore Alta Equipment
glenn.moore@altaequipment.com (284) 305-2134
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