RSC Equipment Rental's $1.13 billion second-lien term loan broke at 100 1/2-101 1/8 in the secondary last Tuesday. Its $400 million asset-based term loan broke at 99 3/4-100 1/4. A buyside trader said the asset-based term loan did not trade as high because of its lower coupon and lack of call protection.
The Deutsche Bank and Citigroup-led second lien of RSC's $2.83 billion credit was flexed down 25 basis points due to oversubscription, according to a banker. Pricing on the second lien is now LIBOR plus 3 1/2%. It has 102, 101 call protection. Pricing remains at LIBOR plus 1 3/4% on the asset-based term loan and the asset-based revolver.
Ripplewood and Oak Hill Capital will use the financing to take RSC private in a deal worth approximately $3.4 billion (CIN, 11/3). A company spokesman declined comment. Calls to Ripplewood and Oak Hill representatives were not returned.