TIDMAHT TIDM56LT 
 
ASHTEAD GROUP PLC ANNOUNCES RENEWAL OF ITS SENIOR BANK DEBT FACILITY AND 
   REDEMPTION OF ASHTEAD HOLDINGS PLC'S $250M SENIOR SECURED NOTES, DUE 2015 
 
Ashtead Group plc ("Ashtead") announces that it has renewed the Group's asset 
based senior secured loan facility in the amount of $1.4 billion and extended 
the facility's maturity from November 2013 to March 2016. The renewed facility 
carries pricing of LIBOR plus 200bp to 250bp depending on leverage, 1% lower 
than the pricing applicable to the existing $1.3bn of commitments that were to 
mature in November 2013. Initial drawings under the renewed facility are at 
LIBOR plus 225bp. 
 
Ashtead also announces that its subsidiary, Ashtead Holdings PLC, has today 
notified the trustee for its $250 million 8.625% senior secured notes, due 
August 2015 ("the 2015 Notes") that it will redeem in full the outstanding 2015 
Notes on 28 April 2011. 
 
Over the 2008 to 2010 period the Group reduced outstanding debt by around 
one-third, principally from organic cash generation. Given this reduction and 
following the renewal of the senior credit facility until 2016, the Board has 
decided to redeem the 2015 Notes early in order to rebalance the mix of 
Ashtead's senior and junior debt. This reflects the Board's expectation that 
the Group has now reached a size and scale where cash generation can largely 
fund organic growth and hence that net debt can remain broadly unchanged over 
the next phase of the cycle¹. 
 
As a consequence of these steps, Ashtead expects to record an exceptional 
financing cost of approximately GBP22 million in the fourth quarter of the 
current fiscal year. This comprises the early redemption call premium of 
approximately GBP7 million payable in cash on 28 April 2011 to holders of the 
2015 Notes being redeemed and approximately GBP15 million for the non-cash write 
off of the remaining unamortised balance of deferred debt raising costs on the 
existing senior credit facility and 2015 Notes. 
 
Following the redemption, the Group's total debt at 30 April 2011 is expected 
to comprise around $750 million drawn under the senior loan facility together 
with the 9% $550 million 2016 senior secured note issue and around $5 million 
of finance lease debt, a total of $1.3 billion or around GBP800 million. Excess 
availability on the asset based facility is estimated to be around $475 million 
once the redemption of the $250 million 2015 Notes has been concluded. The 
renewed senior credit facility and all of the Group's debt remain effectively 
free from any financial covenants whilst excess availability exceeds 12% of 
facility size or $168 million. 
 
Geoff Drabble, chief executive, commented: 
 
"We continue to demonstrate that our strong financial structure is appropriate 
to all phases of the economic cycle. We are pleased with the good support we 
received from our senior lenders in agreeing to the renewed senior loan 
facility with total commitments received of $1.9 billion, a 37% 
oversubscription. The resulting five year average maturity across all our debt 
and our still strong availability provide us with the balance sheet flexibility 
and strength required to enable our businesses to succeed and prosper in the 
years ahead." 
 
Contacts: 
 
Geoff Drabble       Chief executive        ) 
 
Ian Robson          Finance director       )  020 7726 9700 
 
Brian Hudspith      Maitland                  020 7379 5151 
 
Notes 
 
 1. The Board's expectation that net debt can remain broadly unchanged over the 
    next phase of the cycle assumes the current $1.60 dollar sterling exchange 
    rate, current capital expenditure plans and ignores the impact of possible 
    larger scale M&A. 
 
 2. At 31 January 2011, drawn debt under the asset based senior loan facility 
    was $485 million. At the same date Ashtead also had $800 million 
    outstanding in respect of its 2015 and 2016 senior secured notes and $5 
    million of finance lease debt. 
 
 3. There are no changes in the renewed senior loan facility to the financial 
    covenants which apply if excess availability falls below 12% of the 
    facility size or $168 million which are (i) funded debt to EBITDA before 
    exceptionals must not exceed 4.0 times and (ii) the fixed charge coverage 
    ratio must exceed 1.1 times. Both financial covenants are measured at a 
    fixed exchange rate to protect against the risk of currency fluctuations 
    impacting covenanted performance. 
 
 4. The other material terms and conditions of the renewed facility are also 
    broadly unchanged except that lenders have extended their conditional 
    pre-approval of acquisitions to encompass all rental businesses not just 
    those in the US, UK and Canada. 
 
 5. The principal lenders under the renewed senior credit facility are Bank of 
    America, Wells Fargo, GE Capital, Deutsche Bank, Citi, JPMorgan, LloydsTSB, 
    Barclays, RBS, UBS, and HSBC 
 
 6. The redemption of the 2015 Notes will be effected in accordance with the 
    terms of the indenture governing the 2015 Notes at the required redemption 
    price of 104.313% of the principal amount of the 2015 Notes plus accrued 
    and unpaid interest. A separate formal Notice of Redemption is being 
    released by Ashtead Holdings PLC today. 
 
 
 
END
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