Algeco announces launch of €125,000,000 senior secured notes offering
LONDON (November 27, 2018) – Algeco Global S.à r.l. (“Algeco Global” and, together with its subsidiaries, the “Algeco Group” or the “Group”), today announced that one of its subsidiaries, Algeco Global Finance plc (the “Issuer”), is launching an offering of €125,000,000 aggregate principal amount of senior secured notes due 2023, consisting of €100,000,000 euro-denominated 6½ senior secured fixed rate notes due 2023 and €25,000,000 senior secured floating rate notes due 2023 (the “Notes”). The Notes will be issued under the indenture (the “Indenture”) governing the Issuer’s outstanding euro-denominated 6½ senior secured fixed rate notes due 2023 and euro-denominated senior secured floating rate notes due 2023 (the “Existing Notes”), and will form a single series with the Existing Notes for all purposes under the Indenture, including, without limitation, waivers, amendments, redemptions and offers to purchase. It is expected that the Notes will have the same ISIN and common code as the Existing Notes, provided that the Notes sold pursuant to Regulation S under the Securities Act of 1933, as amended (the “Securities Act”) will initially be issued bearing a temporary ISIN and common code.
Algeco Group intends to use the proceeds of the Notes to (i) repay the entire amounts outstanding under certain existing sale-leaseback agreements of the Group together with accrued and unpaid interest (€96 million), (ii) fund cash to the Group’s balance sheet for general corporate purposes (€24 million) and (iii) pay fees and expenses (€5 million). The actual amount of debt to be repaid and fees and expenses on the issue date of the Notes may vary from these amounts and any increase in the amount of debt to be repaid or fees and expenses on the issue date will reduce the amount of cash to be funded to the Group’s balance sheet. The Notes are being offered in a private placement transaction to qualified institutional buyers in accordance with Rule 144A under the Securities Act, and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Cautionary Notice Regarding Forward Looking Statements
This press release contains statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as “forward-looking statements,” particularly those statements concerning expectations regarding the use of proceeds from the offering. A number of risks and uncertainties could cause our actual results to differ materially from current projections, forecasts, estimates and expectations relating to us. Any or all of these forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors, many of which are beyond our control.
This press release shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Important Regulatory Notice
This announcement contains information that prior to its disclosure may have constituted inside information under European Union Regulation 596/2014 on market abuse.
About Modulaire Group
Modulaire Group is the world’s leading business services company specialising in modular space. We create smart spaces for people to live, work and learn. Our business is designed to help customers find the right space solution, no matter what their requirements. Modulaire Group has operations in 24 countries with approximately 250,000 modular space and portable storage units and 3,400 remote accommodations rooms. The company operates as Algeco in Europe, Elliott in the United Kingdom, BUKO Huisvesting, BUKO Bouw & Winkels and BUKO Bouwsystemen in The Netherlands, Malthus Uniteam and Wexus in Norway, Ausco in Australia, Portacom in New Zealand, and Algeco Chengdong in China.
For further information
Investor relations: Phil Vellacott