HY Pulls On Ashtead

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HY Pulls On Ashtead

The bank debt for Ashtead Group was quoted a couple points lower in the mid 90s range.

The bank debt for Ashtead Group was quoted a couple points lower in the mid 90s range. There had been rumors the company would do a high-yield deal to repay the bank debt. But speculation subsided as the high-yield market softened. Ian Robson, Ashtead's finance director, declined to comment. No trades could be confirmed.

Bids for Ashtead's loan tumbled into the 50s last year after accounting problems were discovered at its U.S. subsidiary, Sunbelt Rentals. Subsequently, the company defaulted on its bank loan. Ashtead later reached an agreement with its banks to waive the defaults, said Robson, declining to comment further due to the private nature of the bank debt. The banks also agreed to an amended medium term senior debt facility at that time. Citigroup holds the lead on the company's loan that was originally completed in June of 2000. There was £357.6 million outstanding on the loan at the end of October.

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