Williams Scotsman has scored an amended and restated credit facility led by Banc of America Securities and Deutsche Bank. Launched last Tuesday, the facility consists of a $500 million asset-based revolver and a $150 million term loan. Pricing is LIBOR plus 2 1/2% on both pieces. The facility is expected to have a five-year maturity, according to an 8K filed with the Securities and Exchange Commission.
Moody's Investors Service assigned a B2 rating to the credit, stating that the facility is expected to replace the company's existing loan with additional proceeds used to pay down senior unsecured debt. Moody's said the rating reflects the company's intrinsic strength which is being helped by an improving operating environment.
In late April the company said it has filed a Registration Statement with the SEC for an initial public offering of $250 million of its common stock. Citigroup, Lehman Brothers and CIBC World Markets will act as the joint book-running managers. Robert W. Baird & Co., Banc of America Securities and Deutsche Bank will act as co-managers. Williams Scotsman said it intends to use the offering to repay a portion of existing debt.
Based in Baltimore, Md., Williams Scotsman provides mobile offices, modular classrooms and storage units. It serves over 25,000 customers and operates over 95,000 modular space and portable storage units. Scott Becker, v.p. of finance and treasurer, declined to comment.