RERMAG

H&E Pays Dividend with Proceeds from Offering

H&E Equipment Rental Services announced the closing of an offering of $530 million aggregate principal amount of 7-percent senior notes due 2022 (new notes) in an unregistered offering through a private placement. It also settled its previously announced cash tender offer and consent solicitation with respect to its 8 3/8-percent senior notes due 2016 (old notes).

The notes were offered in a private placement to qualified institutional buyers. H&E used a portion of the net proceeds from the sale to repurchase $158.7 million of about 63.5 percent of the 8 3/8-percent old notes. The tender offer will remain open until Aug. 31 and holders who tender the old notes before 11:59 p.m. will receive $1,021.67 per $1,000 principal amount of the old notes tendered.

H&E also declared a one-time special cash dividend of $7 per share payable Sept. 19 to stockholders of record at the close of business Sept. 5. The aggregate amount of the payment will be about $246 million. The dividend will be funded by the proceeds of the company’s offering of $530 million aggregate principal that closed today.

H&E Equipment Services, based in Baton Rouge, La., is No. 11 on the RER 100.

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