WillScot Mobile Mini Announces Pricing of $500 Million Senior Secured Notes Offering

Rhea-AI Summary

WillScot Mobile Mini Holdings Corp. (WSC) announced the pricing of $500 million in 4.625% senior secured notes due 2028. Proceeds will be used to redeem $441 million of its 6.875% senior secured notes due 2023. This follows a previous redemption of 10% of these notes. The offering is aimed at qualified institutional buyers and will close on August 25, 2020, pending customary conditions. The company may use any remaining funds for working capital or to repay part of WSII's existing credit facility.

Positive

• Pricing of $500 million in 4.625% senior secured notes indicates strong market demand.
• Use of proceeds for debt redemption improves financial stability by addressing higher interest 2023 notes.

Negative

• Company remains exposed to risks and uncertainties related to COVID-19 impacts.
• Future market acceptance and competitive pressures may impact profitability.

PHOENIX, Aug. 11, 2020 (GLOBE NEWSWIRE) -- WillScot Mobile Mini Holdings Corp. (“WillScot Mobile Mini” or the “Company”) (Nasdaq: WSC), a North American leader in turnkey modular space and portable storage solutions, today announced that its indirect subsidiary Williams Scotsman International, Inc. (the “WSII”) has priced its offering of $500 million in aggregate principal amount of 4.625% senior secured notes due 2028 (the “Notes”). WillScot Mobile Mini intends to use the offering proceeds to redeem all $441 million in aggregate principal amount remaining outstanding of WSII’s 6.875% senior secured notes due 2023 (the “2023 Notes”), after giving effect to the redemption of 10% of the aggregate principal amount of the 2023 Notes, as announced on July 27, 2020. The remaining net proceeds from the offering, if any, will be used for working capital and general corporate purposes (which may include a repayment of a portion of WSII’s existing ABL credit facility).

The Notes are being offered in a private placement transaction to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States in accordance with Regulation S under the Securities Act. The Notes will not be 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. This press release does not constitute an offer to sell any security and shall not constitute an offer to sell or the solicitation of any offer to buy any security in any jurisdiction in which such offer or solicitation would be unlawful.

WillScot Mobile Mini expects the offering to close on August 25, 2020, subject to customary closing conditions.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The words “estimates,” “expects,” “anticipates,” “believes,” “forecasts,” “plans,” “intends,” “may,” “will,” “should,” “shall,” “outlook” and variations of these words and similar expressions (or the negative thereof) identify forward-looking statements, which are generally not historical in nature. Forward-looking statements are subject to a number of risks, uncertainties, including the impacts of the COVID-19 pandemic, assumptions and other important factors, many of which are outside the Company’s control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. These forward-looking statements are only estimates, assumptions and projections and involve known and unknown risks and uncertainties, many of which are beyond the control of the Company. Important factors include: the Company’s ability to manage growth and execute its business plan; the risks and costs associated with the integration of the WillScot Corporation and Mobile Mini Inc. businesses; the Company’s estimates of the size of the markets for its products; the rate and degree of market acceptance of its products; the success of other competing modular space and portable storage solutions that exist or may become available; rising costs adversely affecting its profitability (including cost increases resulting from tariffs); general economic and market conditions impacting demand for its products and services; the Company’s capital structure, levels of indebtedness and availability of credit; the ability to retain and hire key personnel and uncertainties arising from leadership changes; the ability to implement and maintain an effective system of internal controls; potential litigation involving the Company; implementation of tax reform; the changes in political conditions in the U.S. and other countries in which the Company operates, including U.S. trade policies; and such other risks and uncertainties described in the periodic reports the Company files with the SEC from time to time including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on March 2, 2020 and its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2020 and June 30, 2020, which were filed with the SEC on May 6, 2020 and August 10, 2020, respectively and are available through the SEC’s EDGAR system at www.sec.gov. Any forward-looking statement speaks only as of the date on which it is made, and the Company assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

About WillScot Mobile Mini Holdings Corp.

WillScot Mobile Mini Holdings Corp. trades on the Nasdaq stock exchange under the ticker symbol “WSC.” Based in Phoenix, Arizona, WillScot Mobile Mini is a North American leader in turnkey modular space and portable storage solutions. It was formed in 2020 upon the merger of leaders in the modular space and portable storage markets. Together the WillScot and Mobile Mini brands operate approximately 275 locations across the United States, Canada, Mexico, and the United Kingdom with a combined fleet of over 350,000 portable offices and storage containers. They lease turnkey office space and storage solutions for temporary applications across a diverse customer base in the commercial and industrial, construction, retail, education, health care, government, transportation, security and energy sectors. They create value by enabling customers to add space efficiently and cost-effectively – when the solution is perfect, productivity is all the customer sees.

Contact Information

Investor Inquiries:

Emily Tadano

emily.tadano@willscotmobilemini.com

Media Inquiries:

Scott Junk

scott.junk@willscotmobilemini.com

 

FAQ

What is the latest news about WillScot Mobile Mini (WSC)?

WillScot Mobile Mini has priced $500 million in senior secured notes due 2028 to refinance existing higher-interest debt.

When is the closing date for the WSC notes offering?

The closing date for the offering of senior secured notes is expected to be August 25, 2020.

How will WillScot Mobile Mini use the proceeds from the notes?

Proceeds will primarily be used to redeem $441 million of existing 6.875% senior secured notes and for working capital.

What are the risks mentioned in the WillScot Mobile Mini press release?

The risks include impacts from COVID-19, market acceptance for products, and rising costs affecting profitability.