General Finance Corporation Announces Public Offering of Senior Notes

Rhea-AI Summary

General Finance Corporation (NASDAQ:GFN) has announced the commencement of an underwritten public offering of Senior Notes due 2025. The proceeds will be utilized to redeem a portion of its $77.4 million principal amount of 8.125% Senior Notes, set to mature in July 2021. D.A. Davidson & Co., B. Riley Securities, Inc., and Janney Montgomery Scott LLC are the joint book-running managers for the offering. The registration statement relating to the securities has been filed with the SEC and declared effective, ensuring compliance with securities laws.

Positive

• Proceeds from the offering will be used to redeem higher-interest Senior Notes, potentially reducing interest expense.
• Successful offering could strengthen liquidity and financial stability.

Negative

• Redemption of Senior Notes may signal existing financial strain.
• Potential dilution of existing shareholders depending on the nature of the offering.

PASADENA, Calif., Oct. 20, 2020 (GLOBE NEWSWIRE) -- General Finance Corporation (NASDAQ:GFN), a leading specialty rental services company offering portable storage, modular space and liquid containment solutions (the “Company”), announced that it commenced an underwritten public offering of Senior Notes due 2025 (the “Notes”) today.

The Company intends to use the net proceeds from the Notes offering to redeem a portion of the $77.4 million principal amount of its 8.125% Senior Notes due July 2021.

D.A. Davidson & Co., B. Riley Securities, Inc. and Janney Montgomery Scott LLC are acting as joint book-running managers for the Notes offering. William Blair & Company, National Securities Corporation and Wedbush Securities, Inc. will serve as co-lead managers for the offering.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and has been declared effective. The offering will be made only by means of a prospectus supplement and a related prospectus, copies of which may be obtained on the SEC’s website at www.sec.gov or by contacting:  

D.A. Davidson & Co.
611 Anton Blvd.
Suite 600
Costa Mesa, CA 92626
(800) 332-5915
Email: prospectusrequest@dadco.com 

B. Riley Securities, Inc.
1300 17th Street North
Suite 1400
Arlington, VA 22209
(703) 312-9580 (collect)
Email: prospectuses@brileyfin.com 

Janney Montgomery Scott LLC
Attention: Syndicate Department
1717 Arch Street
Philadelphia, PA 19103
(215) 665-4450 (collect)
Email: prospectus@janney.com 

This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities. The Notes may not be sold in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About General Finance Corporation

Headquartered in Pasadena, California, General Finance Corporation (NASDAQ: GFN, www.generalfinance.com) is a leading specialty rental services company offering portable storage, modular space and liquid containment solutions.  Management’s expertise in these sectors drives disciplined growth strategies, operational guidance, effective capital allocation and capital markets support for the Company’s subsidiaries.  The Company’s Asia-Pacific leasing operations in Australia and New Zealand consist of wholly-owned Royal Wolf (www.royalwolf.com.au), the leading provider of portable storage solutions in those regions. The Company’s North America leasing operations consist of wholly-owned subsidiaries Pac-Van, Inc.(www.pacvan.com) and Lone Star Tank Rental Inc. (www.lonestartank.com), providers of portable storage, office and liquid storage tank containers, mobile offices and modular buildings.  The Company also owns Southern Frac, LLC (www.southernfrac.com), a manufacturer of portable liquid storage tank containers and, under the trade name Southern Fabrication Specialties (www.southernfabricationspecialties.com), other steel-related products in North America.

Investor Contact

Larry Clark
Financial Profiles, Inc.
lclark@finprofiles.com 
310-622-8223

FAQ

What is the purpose of General Finance Corporation's offering of Senior Notes?

The offering aims to use the proceeds to redeem a portion of the $77.4 million principal amount of 8.125% Senior Notes due July 2021.

When are the Senior Notes due that General Finance Corporation is offering?

The Senior Notes being offered are due in 2025.

Who are the managers for General Finance Corporation's Senior Notes offering?

D.A. Davidson & Co., B. Riley Securities, Inc., and Janney Montgomery Scott LLC are acting as joint book-running managers.

What is the current principal amount of General Finance Corporation's 8.125% Senior Notes?

The current principal amount of the 8.125% Senior Notes is $77.4 million.

How may the offering of Senior Notes affect shareholders of General Finance Corporation?

The offering could lead to dilution of existing shareholders if new shares are issued as part of the offering.