CEO Juan Carlos Mas said the company’s board of directors decided to go private because it believes the advantages of continuing as a public company are outweighed by the disadvantages. In addition to time and cost savings, Mas said, going private will allow the company to focus attention and resources on implementing its business plan and improving operating results.
In other Neff news, Standard & Poor’s Ratings Services last week placed its ratings on Neff Corp., including its CCC corporate credit rating, on CreditWatch with positive implications following the company’s recent announcement that it had repurchased about $80 million face value of its subordinated notes for about $50 million. The transaction reduced Neff’s debt to about $250 million.
“The rating action followed several events that are considered positive,” said S&P’s credit analyst John Sico. The events include Neff making its June 1 interest payment on the subordinated notes; the company reaching an agreement with its lenders to amend certain terms of its revolving credit facility; and the company receiving a waiver of certain defaults under its credit facility.
The company now has about $4 million in interest payments due semi-annually on its two subordinated notes that have $75 million outstanding.
Neff is No. 10 on the RER 100 and has 72 locations in 16 states.
