WillScot Holdings issues $500M in Senior Secured Notes

WillScot Holdings Corp (NASDAQ:WSC), a leading provider of modular space and portable storage solutions with a market capitalization of $5.35 billion, has entered into a significant financial agreement, according to a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro data, the company maintains impressive gross profit margins of 54.34% and generated $649.52 million in EBITDA over the last twelve months. On Monday, the company, through its subsidiary Williams Scotsman, Inc., established an Indenture for $500 million in 6.625% Senior Secured Notes due 2030.

The proceeds from the issuance are earmarked to redeem WillScot’s existing 6.125% senior secured notes due 2025, totaling $526.5 million, with the redemption scheduled for Tuesday. The company aims to use the net proceeds along with approximately $33.0 million from its asset-based revolving credit facility to cover the redemption and associated fees.

The newly issued notes, guaranteed by certain WillScot subsidiaries, are set to mature on April 15, 2030, with semiannual interest payments. The guarantees will be released under specific conditions, such as the absence of default and the reduction of secured debt below a set threshold.

WillScot has included provisions for optional redemption of the notes, allowing them to repurchase a portion of the notes with equity offering proceeds or at a premium before April 15, 2027. Thereafter, the company can redeem the notes at decreasing premiums until they become redeemable at par in 2029.

The Indenture also stipulates covenants limiting WillScot’s ability to engage in certain financial activities, such as incurring additional debt, paying dividends, or selling assets without meeting specific criteria.

In the event of a Change of Control, as defined in the Indenture, Williams Scotsman, Inc. must offer to repurchase the notes at a premium. Moreover, the agreement outlines several scenarios that would constitute an Event of Default, potentially impacting the company’s financial obligations.

This strategic financial maneuver is designed to optimize WillScot’s debt structure and reduce future interest expenses. The details of this transaction are based on the statements from the press release and SEC filing. InvestingPro subscribers have access to 10 additional key insights about WillScot’s financial health and future prospects, including detailed analysis of its debt management strategy and growth potential.

In other recent news, WillScot Holdings Corporation has successfully priced a private offering of $500 million in senior secured notes due 2030, with the transaction expected to close shortly. The proceeds, along with additional borrowings from an existing credit facility, are intended to fund the redemption of outstanding 6.125% senior secured notes due 2025. Concurrently, WillScot has secured consent from note holders for amendments to its senior secured notes, surpassing the required threshold, which will allow the company to proceed with its financial strategies. In leadership changes, Worthing Jackman has been appointed as the new Chairman of the Board, succeeding Erik Olsson, who will not stand for reelection. Additionally, Dominick Zarcone has been nominated for election as a director, pending stockholder approval. Analyst firm DA Davidson has maintained its Buy rating on WillScot, reiterating a price target of $47.00, following the company’s recent Investor Day where it outlined strategies for market expansion and operational efficiency. These developments reflect WillScot’s ongoing efforts to strengthen its financial position and governance structure.

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