Algeco Scotsman Announces Closing of Notes Offering and Refinancing

BALTIMORE, Feb. 15, 2018 -- Algeco Scotsman Global S.à r.l. (“A/S Global” and, together with its subsidiaries, “Algeco Scotsman”), today announced that two of its subsidiaries, Algeco Scotsman Global Finance plc and Algeco Scotsman Global Finance 2 plc, have closed their previously announced notes offerings.

Algeco Scotsman Global Finance plc issued the following tranches of senior secured notes due 2023 (the “Senior Secured Notes”):

• €600,000,000 6 ¹/₂% Senior Secured Fixed Rate Notes;
  
  
• $520,000,000 8% Senior Secured Fixed Rate Notes; and
  
  
• €150,000,000 Senior Secured Floating Rate Notes.

Algeco Scotsman Global Finance 2 plc issued $305,000,000 10% Senior Notes due 2023 (the “Senior Notes” and, together with the Senior Secured Notes, the “Notes”).

Additionally, Algeco Scotsman has obtained three-year cross currency swaps for the dollar-denominated Notes into euro, which will swap into euro the coupon and principal amount of 100% of the Senior Notes and $230 million of the dollar-denominated 8¹/₂% Senior Secured Notes and the coupon of $290 million of dollar-denominated 8¹/₂% Senior Secured Notes. Giving effect to the swaps, the weighted average interest rates for the Senior Secured Notes and Senior Notes are respectively 6.98% and 7.74% per annum. 

The Notes offering formed part of a comprehensive refinancing of Algeco Scotsman’s capital structure, which closed simultaneously. The refinancing additionally included the issuance of a privately-placed preferred stock facility for net proceeds of €327 million and a new $400 million syndicated senior secured asset-based credit facility. The proceeds were used to redeem the Algeco Group’s existing Senior Secured Notes due 2018 and existing Senior Unsecured Notes due 2019, to refinance the existing asset-based credit facility and to pay for certain costs, fees and expenses.

The Notes were offered in a private placement transaction to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (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.

About Algeco Scotsman

Algeco Scotsman is the leading global business services provider focused on modular space,  secure portable storage solutions, and remote workforce accommodation management. Headquartered in Baltimore, Algeco Scotsman has operations in 24 countries with approximately 245,000 modular space and portable storage units and 11,400 remote accommodations rooms. The company operates as Target Logistics in North America, Algeco in Europe, Elliott in the United Kingdom, Ausco in Australia, Portacom in New Zealand, and Algeco Chengdong in China.

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.

Disclaimer

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.

Investor Relations Contact

Scott Shaughnessy
Vice President, Finance
Algeco Scotsman
+1 410-933-5921
[email protected]