Ashtead Group PLC - London-based equipment rental company - Subsidiary Ashtead Capital Inc will conduct a private offering of two series of benchmark-sized, senior notes.
The exact terms and timing of the offer, including the final aggregate principal amount will depend on market conditions and other factors.
Ashtead will use the proceeds alongside funds from existing facilities to fund the redemption of its outstanding 4.125% senior notes due 2025 and 5.250% senior notes due 2026.
Moody's Investors Services assigns Baa3 rating to note offering, reflecting the company's resilience shown during the pandemic, as Ashtead maintained its net leverage within its target range of 1.5x - 2.0x.
"The business has successfully achieved organic growth (apart from in 2020) at well above market rates over the past ten years to help the company consolidate its number two position in the US market and number one position in the UK," Moody's stated.
"The rating remains constrained by the company's exposure to cyclical end markets, and the expectation that credit metrics are unlikely to improve materially due to large fleet capital spending and dividends," the credit agency added.
Current stock price: 5,312.00 pence
Year-to-date change: up 54%
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Ashtead Group (AHT)