WillScot aims to issue $500 million in senior secured notes

PHOENIX - WillScot Holdings Corporation (NASDAQ:WSC), known for its temporary space solutions and currently valued at $5.5 billion by market cap, announced today its subsidiary Williams Scotsman, Inc. (WSI) is planning to offer $500 million in senior secured notes due 2030, subject to market conditions. According to InvestingPro data, the company maintains a debt-to-capital ratio of 0.42 and currently trades below its Fair Value, suggesting potential upside opportunity for investors. These notes are to be WSI’s general second lien senior secured obligations, backed by guarantees from WSI’s domestic subsidiaries and direct parent, Williams Scotsman Holdings Corp. The company’s financial position is supported by strong gross profit margins of 54.3% and positive free cash flow yield of 6%.

The company also intends to redeem all of its outstanding 6.125% senior secured notes due 2025, with a total principal amount of $526.5 million. The redemption, set at a price equal to 100% of the principal plus accrued interest, is contingent upon the successful completion of the new debt financing.

WSI aims to finance this redemption through the proceeds from the new offering, supplemented by roughly $33 million from additional borrowings under its existing asset-based revolving credit facility. These funds will also cover related fees and expenses.

The offering is targeted at qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons outside the United States per Regulation S under the same act. The notes and guarantees will not be registered under the Securities Act or any state securities laws and cannot be offered or sold in the U.S. without registration or an exemption from registration requirements.

WillScot, headquartered in Phoenix, Arizona, operates from approximately 260 branches across North America and is recognized for its wide range of modular space and portable storage solutions. The company serves various sectors of the economy, providing essential services to its diverse customer base. With an EBITDA of $649.5 million in the last twelve months and impressive revenue growth of 18% over the past five years, WillScot demonstrates solid operational performance. For deeper insights into WillScot’s financial health and growth prospects, including 8 additional exclusive ProTips, check out the comprehensive analysis available on InvestingPro.

The company’s press release includes forward-looking statements, which are subject to risks, uncertainties, and assumptions. There is no assurance that the anticipated offering of the notes will occur as planned or that the redemption of the 2025 notes will be completed as described. This news article is based on a press release statement, and no offer to buy securities is being made through this report.

In other recent news, WillScot Mobile Mini Holdings Corp. reported fourth-quarter revenue of $602.5 million, slightly missing market projections by 1%, while its EBITDA of $284.7 million exceeded expectations by the same margin. BofA Securities adjusted its price target for WillScot to $43.00 from $47.00, maintaining a Buy rating despite the company’s conservative guidance for 2025, which reflects ongoing challenges in demand across its end markets. DA Davidson also reiterated its Buy rating with a $47.00 target, following WillScot’s Investor Day presentation that highlighted strategies for market penetration and free cash flow enhancement.

Morgan Stanley maintained an Overweight rating with a $50.00 price target, noting the company’s new capital allocation strategy, which includes the initiation of a dividend. WillScot announced a quarterly cash dividend program, with the inaugural dividend of $0.07 per share payable on March 19, 2025, reflecting confidence in its financial stability and growth prospects. Additionally, the company is reportedly in discussions with US Immigration and Customs Enforcement (ICE) to lease mobile units for immigration purposes, which could represent a significant contract if finalized.

These developments, including the potential ICE deal, have captured investor attention, with analysts suggesting that WillScot’s strategies and market positioning could impact its future performance. As the company continues to implement its strategic initiatives, investors will be closely monitoring further announcements and financial disclosures.

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