EquipmentShare, an equipment rental and equipment asset management company, intends to offer, in a private offering, subject to market and other conditions, an additional $300 million aggregate principal amount of its senior secured second lien notes due in 2028. On May 9, EquipmentShare issued 9% senior secured notes due 2028 in an aggregate principal amount of $640 million pursuant to an indenture.
EquipmentShare intends to use the net proceeds from the offering to repay and refinance certain of its existing debt and for general corporate purposes. The additional notes will be secured, on a pari passu basis with the original notes, by a second priority lien on substantially all of the assets that secure any first priority lien obligations of EquipmentShare.
The additional notes will be issued as additional securities under the indenture and will form a single series with the original notes, including with respect to waivers, amendments, redemptions and offers to purchase. The additional notes will have the same terms and conditions as those that apply to the original notes other than the issue date and offering price and will be fungible with the original notes for U.S. federal income tax purposes.
As previously reported EquipmentShare recently completed an extension of its Series E equity raise, led by funds affiliated with BDT & MSD Partners. Through the extension, EquipmentShare raised an incremental $150 million from existing and new investors for a total of $440 million in Series E funding in 2022 and 2023.
