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PHOENIX - WillScot Holdings Corporation (NASDAQ:WSC), a provider of modular space and portable storage solutions with a market capitalization of $5.55 billion, has successfully obtained consent from holders of its senior secured notes for proposed amendments to its indentures, the company announced Monday. According to InvestingPro data, the company maintains impressive gross profit margins of 54.34% despite recent market challenges.
As of the March 21, 2025 expiration date, consent had been received from more than two-thirds of the holders of its 6.625% Senior Secured Notes due 2029 and its 7.375% Senior Secured Notes due 2031, surpassing the required threshold. This approval represents approximately 88% and 83% of the outstanding principal amounts of the 2029 and 2031 notes, respectively, which both total $500 million. The company’s stock has experienced a significant decline of 27.25% over the past six months, though InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value assessment.
In accordance with the terms outlined in the consent solicitation statement dated March 17, 2025, WillScot will pay an aggregate cash consideration of $500,000 to consenting note holders. This equates to roughly $0.57 per $1,000 principal amount of the 2029 notes and about $0.60 per $1,000 principal amount of the 2031 notes. The payments are scheduled to be disbursed as early as today, subject to the terms and conditions detailed in the statement.
Following the receipt of the requisite consents, WillScot’s subsidiary, Williams Scotsman, Inc. (WSI), intends to enter into supplemental indentures to the governing indentures for these notes, which will become effective upon execution today.
WillScot, headquartered in Phoenix, Arizona, operates across North America, providing a variety of temporary space solutions. The company’s offerings include modular offices, classrooms, temporary restrooms, and climate-controlled units, among other products and services. WillScot serves a wide range of sectors within the economy from its network of approximately 260 branch locations. Investors anticipating the company’s next earnings report should mark their calendars for April 23, 2025. For deeper insights into WillScot’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, visit InvestingPro.
This consent solicitation process was managed by D.F. King & Co., Inc., serving as the information, tabulation, and paying agent, with J.P. Morgan Securities LLC acting as the solicitation agent.
The information provided in this article is based on a press release statement from WillScot Holdings Corporation.
In other recent news, WillScot Holdings Corporation announced a private offering of $500 million in senior secured notes due 2030, with proceeds aimed at redeeming its outstanding 6.125% senior secured notes due 2025. The company plans to use the funds from this offering, along with $33 million from its existing credit facility, to finance the redemption and cover associated fees. Meanwhile, WillScot has made significant changes to its board of directors, appointing Worthing Jackman as the new Chairman and nominating Dominick Zarcone for election as a director. These changes underscore the company’s focus on strong governance and strategic leadership.
Analyst firms have also been active in evaluating WillScot’s prospects. DA Davidson reaffirmed its Buy rating with a $47 price target, citing the company’s strategic initiatives to enhance market penetration and free cash flow. On the other hand, BofA Securities lowered its price target to $43 while maintaining a Buy rating, following WillScot’s fourth-quarter results that showed revenue slightly below consensus and EBITDA slightly above expectations. The company’s guidance for 2025 reflects ongoing challenges in its end markets, although BofA noted positive trends such as increased retailer remodels and stable rental rates. These developments are critical for investors to monitor as WillScot navigates its strategic and financial landscape.
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