SOURCE: Algeco Scotsman

Algeco Scotsman

May 01, 2013 13:09 ET

Algeco Scotsman Enters Into Five-Year $400 Million HOLDCO Loan Agreement

BALTIMORE, MD--(Marketwired - May 1, 2013) -  Algeco Scotsman Global S.á r.l. ("AS") announced today that its ultimate parent company, Algeco/Scotsman Holding S.á r.l. ("ASH"), through its wholly-owned subsidiary, Algeco Scotsman PIK S.A. ("AS PIK"), entered into a $400 million payment-in-kind debt ("PIK Debt") loan agreement. The issuance of the PIK Debt is intended to fund a partial redemption of capital, net of transaction fees and expenses, to ASH's shareholders.

The PIK Debt will bear interest at a rate equal to 15.75% per annum, or 15.00% per annum to the extent paid in cash. The PIK Debt will mature in May 2018 and will be mandatorily pre-payable with the proceeds of certain offerings or other sales of equity and upon the occurrence of a change of control transaction. The funding of the PIK Debt is expected to occur on or about May 14, 2013, subject to customary closing conditions.

Neither AS nor any of its subsidiaries, which comprise the entire restricted group under the existing bond and bank facilities, will be obligors or guarantors under the PIK Debt. To secure the obligations of AS PIK under the PIK Debt, ASH and certain of its subsidiaries are granting a pledge over all of the issued and outstanding shares of AS.

Goldman Sachs and Morgan Stanley acted as joint bookrunners on the loan agreement.

Cautionary Notice Regarding Forward Looking Statements

This press release may contain forward-looking statements, which reflect Algeco Scotsman's expectations regarding its future operational and financial performance. Although any forward-looking statements contained in this press release reflect management's current beliefs based upon information currently available to management and upon assumptions which management believes to be reasonable, actual results may differ materially from those stated in or implied by these forward-looking statements. A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in any forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on any forward-looking statements. Except as required by law, Algeco Scotsman undertakes no obligation, and specifically declines any obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Algeco Scotsman

Algeco Scotsman is a leading global business services provider focused on modular space, secure portable storage solutions and remote workforce accommodations. Operating as Williams Scotsman in North America, Algeco in Continental Europe, Elliott in the United Kingdom, Eurobras in Brazil, Ausco in Australia, Portacom in New Zealand and Target Logistics globally, the company manages a fleet of more than 310,000 units, with operations or affiliates in 37 countries including Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Finland, France, Germany, Hungary, Italy, Lithuania, Luxembourg, Mexico, Netherlands, New Zealand, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Arab Emirates, United Kingdom, and United States.