Cooper Equipment Rentals Closes Offering of C$250 million Senior Unsecured Notes
Cooper Equipment Rentals Limited has successfully closed a private placement offering of C$250 million aggregate principal amount of 7.45 percent senior unsecured notes due July 4, 2029.
The notes are general unsecured obligations of Cooper, which rank equal in right of payment with all other existing and future unsecured indebtedness of the company. The notes are effectively subordinated to all secured indebtedness incurred from time to time by Cooper, including indebtedness under the company’s asset-based loan credit facility.
The notes offering was underwritten by a syndicate of underwriters led by RBC Capital Markets and Scotiabank, as joint bookrunners, and also includes Wells Fargo Securities Canada, CIBC Capital Markets and BMO Capital Markets, as co-managers.
The notes have been assigned a provisional rating of BB (low) with a stable outlook by DBRS Limited.
Cooper intends to use the net proceeds from the offering to repay a portion of the indebtedness outstanding under the company’s ABL credit facility and for the payment of a shareholder distribution.
The notes have been offered for sale in each of the provinces of Canada to "accredited investors" on a private placement basis in accordance with Canadian securities laws, and in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the U.S. Securities Act.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.
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Cooper Equipment Rentals at work