Deutsche Bank, Bear Stearns and Bank of America last week launched syndication of an $880 million credit to back the leveraged buyout of NES Rentals by private equity shop Diamond Castle. The deal includes a $450 million revolver and a $430 million second lien. Pricing is LIBOR plus 1 3/4% on the revolver and LIBOR plus 5 1/2% on the second lien. The deal is covenant lite. Diamond Castle's acquisition of NES Rentals, one of the nation's largest aerial and general equipment rental and traffic safety services providers, is valued at approximately $850 million, including the assumption of certain liabilities.
"After undergoing significant change in recent years, NES Rentals has emerged as a well-positioned and profitable business," said Andrew Studdert, NES Rentals chairman and ceo, in a release. "The progress we have made allowed us to be in a position to consider options to unlock the value of our company." Calls to Alan Sobel, v.p., finance, and Michael Disser, v.p. of marketing at NES Rentals, as well as Linda Grogan, cfo at Diamond Castle, were not returned.
NES Rentals' board of directors retained Bear Stearns in December 2005 as the exclusive financial advisor to assist in reviewing strategic alternatives. Completion of the sale is expected in the next two months. Bank of America is also familiar to the company, leading a $275 million second-lien term loan priced at LIBOR plus 5% in 2004 (LMW, 7/26/2004).