WillScot prices $500 million senior secured notes offering

PHOENIX - WillScot Holdings Corporation (NASDAQ:WSC), a North American leader in modular space and portable storage solutions currently valued at $5.5 billion, has priced a private offering of $500 million in senior secured notes due 2030. According to InvestingPro data, the company maintains a Fair Value rating indicating potential upside, despite its stock declining nearly 35% over the past year. The notes, issued by subsidiary Williams Scotsman, Inc. (WSI), were priced at face value and are expected to close around March 26, 2025, subject to standard closing conditions.

The company also announced its plans to redeem all outstanding 6.125% senior secured notes due 2025, with a total principal amount of $526.5 million. The redemption is contingent on the successful completion of the new debt financing and will include accrued and unpaid interest up to the redemption date. With a debt-to-equity ratio of 3.9x and impressive gross profit margins of 54%, the company demonstrates both significant leverage and strong operational efficiency.

The net proceeds from the offering, estimated at approximately $493.5 million, alongside an anticipated $33.0 million from additional borrowings under an existing credit facility, are intended to fund the redemption of the 2025 notes and cover related fees and expenses.

The offering targets 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 under Regulation S. These senior notes and related guarantees have not been registered under the Securities Act or any state securities laws. Therefore, they 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 or a solicitation of an offer to buy any securities, nor does it constitute a notice of redemption or an offer to purchase or solicit an offer to sell the outstanding 2025 notes.

Headquartered in Phoenix, Arizona, WillScot operates from approximately 260 branch locations and additional drop lots across the United States, Canada, and Mexico. The company is known for providing a wide range of modular space and portable storage solutions to various sectors of the economy. With an EBITDA of $650 million in the last twelve months and a strong five-year revenue growth rate of 18%, WillScot demonstrates solid operational performance. For detailed analysis and 8 additional exclusive insights, visit InvestingPro, where you can access comprehensive Pro Research Reports covering what really matters about WillScot and 1,400+ other top stocks.

The information contained in this article is based on a press release statement from WillScot Holdings Corporation.

In other recent news, WillScot Holdings Corporation has announced a significant financial maneuver involving the issuance of $500 million in senior secured notes due 2030. This move is intended to facilitate the redemption of its outstanding 6.125% senior secured notes due 2025, with a total principal amount of $526.5 million. The company plans to use proceeds from the new offering and additional borrowings to fund this redemption. Additionally, WillScot has initiated a quarterly cash dividend program, with the inaugural dividend set at $0.07 per share, payable in March 2025. This decision underscores the company’s confidence in its financial stability and growth prospects.

Analyst firms have also weighed in on WillScot’s recent performance. DA Davidson has maintained its Buy rating with a $47 price target, citing the company’s strategies for increasing market penetration and free cash flow. Meanwhile, BofA Securities has adjusted its price target to $43, maintaining a Buy rating despite the company’s cautious guidance for 2025 due to market challenges. Morgan Stanley has reiterated an Overweight rating with a $50 price target, highlighting the introduction of dividends as a positive shift in the company’s capital allocation strategy. These developments reflect WillScot’s ongoing efforts to strengthen its financial position and attract investor confidence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.