09.01.2006

H&E files IPO details

H&E Equipment Services has now issued further details of its initial public offering. According to SEC filings made last week, It will sell 10.9 million shares. The company had said that it wanted to raise around $150 million it is likely therefore to price the shares at between $15.50 and $17.50.

H&E originally filed its intention to launch an IPO in October 2005 after agreeing too take over Eagle High Reach in order to expand its coverage into the important Californian access market. see Vertikal.net Oct 17th.

In last weeks filings it says that it will use up to $57.7 million from the proceeds to fund its acquisition of Eagle High Reach, and $35 million to purchase rental equipment currently under operating leases. The balance will be used to cover a deferred compensation plan and to buy out some longer term debts.

H&E placed a $2 million non-refundable deposit when it agreed to buy Eagle High Reach back in October. The company has said that in the case that the acquisition fails, it will use the funds for investment in other growth strategies.

However as H&E chairman Gary Bagley is serving as interim CEO of Eagle High Reach and Ken Sharp, another H&E manager is also an Eagle director, andthe IPO is likely to be oversubscribed, it is hard to imagine that all will not go as planned.

Associated story: See Vertikal.net Nov 25th – H&E settle with Ashtead