Item 7.01. Regulation FD Disclosure.
Pursuant to Regulation FD, each registrant furnishes the information set
forth below. Such information shall not be deemed to be "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or otherwise subject to the liabilities of that section, and shall not be
deemed to be incorporated by reference into any of the filings of such
registrant under the Securities Act of 1933, as amended (the "Securities Act"),
or the Exchange Act, whether made before or after the date hereof and regardless
of any general incorporation language in such filings, except to the extent
expressly set forth by specific reference in such a filing.
Proposed Unregistered Senior Notes Offering
On November 2, 2009, RSC Equipment Rental, Inc. ("RSC") and RSC Holdings III,
LLC (together with RSC, the "Issuers"), each an indirect subsidiary of RSC
Holdings Inc. ("RSC Holdings"), initiated an offering of senior notes due 2019
(the "Senior Notes") in an aggregate principal amount of $200 million. The
Issuers intend to use the proceeds from the sale of the Senior Notes to repay a
portion of their borrowings under their Second Lien Term Facility (as defined
below).
The Senior Notes will be offered only to qualified institutional buyers under
Rule 144A under the Securities Act, and to persons outside the United States
under Regulation S under the Securities Act. The Senior Notes have not been
registered under the Securities Act and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements.
The offering of the Senior Notes is not conditioned upon the effectiveness of
either the ABL Amendment or the Second Lien Amendment (each as defined below).
Proposed Credit Agreement Amendments
The Issuers intend to begin soliciting consents to (i) amendments (the "ABL
Amendment") to their credit agreement (the "Senior ABL Revolving Facility")
among RSC Holdings II, the Issuers, any other borrowers party thereto from time
to time, RSC Equipment Rental of Canada Ltd., Deutsche Bank AG, New York Branch,
as U.S. administrative agent and U.S. collateral agent, Deutsche Bank AG, Canada
Branch, as Canadian administrative agent and Canadian collateral agent, the
lenders party thereto from time to time, Wells Fargo Bank, N.A., as syndication
agent, Bank of America, N.A. and JPMorgan Chase Bank, N.A., as co-documentation
agents, and Deutsche Bank Securities Inc., Citigroup Global Markets Inc., J.P.
Morgan Securities Inc. and Wells Fargo Securities, LLC, as joint lead arrangers
and joint book managers and (ii) amendments (the "Second Lien Amendment") to
their credit agreement (the "Second Lien Term Facility") among RSC Holdings II,
the Issuers, any other borrowers party thereto from time to time, Deutsche Bank
AG, New York Branch, as administrative agent, the lenders party thereto from
time to time, Citicorp North America, Inc., as syndication agent, GE Capital
Markets, Inc., as Senior Managing Agent, General Electric Capital Corporation,
as documentation agent, and Deutsche Bank Securities Inc. and Citigroup Global
Markets, Inc., as joint lead arrangers and joint book managers.
The ABL Amendment will permit the Issuers to prepay indebtedness under the
Second Lien Term Facility and redeem or repurchase senior unsecured notes, in
each case with the proceeds from the issuance of permitted refinancing
indebtedness without complying with the payment conditions set forth in the
Senior ABL Revolving Facility. The Second Lien Amendment will permit the Issuers
to issue senior unsecured notes, and indebtedness incurred in connection with
any such issuances will not count against the general debt basket or any other
debt incurrence requirement under the Second Lien Term Facility; provided that
the proceeds from any such issuance of senior unsecured notes are used to repay
indebtedness outstanding under the Second Lien Term Facility. In addition to any
senior unsecured notes issued in accordance with the Second Lien Amendments, the
Issuers will also be able to incur indebtedness in connection with the issuance
of additional senior unsecured notes in an amount equal to the capacity
available under the $275 general debt basket under the Second Lien Term Facility
without being required to use the proceeds from such issuances to repay
indebtedness under the Second Lien Term Facility. As of the date of this Report,
the Issuers had $275 million of availability under the general debt basket, and
the incurrence of indebtedness in connection with the issuance of the Senior
Notes will utilize $200 million capacity under the basket. The Second Lien
Amendments will also re-set the general debt basket under the Second Lien Term
Facility to the extent that the general debt basket has been previously utilized
to incur indebtedness in connection with the issuance of the Senior Notes
described above.
The solicitation with respect to the ABL Amendment and the Second Lien
Amendment has not been launched as of the date of this Report, and there can be
no guarantee that the Issuers will receive the requisite consents necessary to
effect the proposed amendments.
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Forward-Looking Statements
This report contains certain "forward-looking statements" within the meaning
of Section 27A of the Securities Act and Section 21E of the Exchange Act. These
statements are based on management's current expectations and are subject to
uncertainty and changes in factual circumstances. The forward-looking statements
herein include statements regarding the offering of the Senior Notes, the ABL
Amendment and the Second Lien Amendment.
In addition, forward-looking statements generally can be identified by the
use of forward-looking terminology such as "may", "plan", "seek", "will",
"expect", "intend", "estimate", "anticipate", "believe" or "continue" or the
negative thereof or variations thereon or similar terminology. Actual results
and developments may therefore differ materially from those described in this
release.
The registrants caution therefore that undue reliance should not be placed on
these forward-looking statements. It is important to understand that the risks
and uncertainties discussed in "Risk Factors" and elsewhere in each registrant's
most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each
as amended, as applicable, filed with the United States Securities and Exchange
Commission could affect the registrants' future results and could cause those
results or other outcomes to differ materially from those expressed or implied
in the registrants' forward-looking statements.
These forward-looking statements are not guarantees of future performance and
speak only as of the date hereof, and, except as required by law, the
registrants disclaim any obligation to update these forward-looking statements
to reflect future events or circumstances.
Nothing in this Form 8-K constitutes an offer to sell or the solicitation of
an offer to buy any securities, including the Senior Notes.
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