01.06.2006

Neff to go public….again

Neff Corp the Miami-based rental company that is said to be the ninth largest in the USA, has filed plans to go public again, almost a year after it was acquired by Odyssey Investment Partners LLC, a New York based private equity firm lead by Stephen Berger, who was with GE capital until 1993.

Odyssey purchased Neff last April for $240.5 million, or $8.21 a share, as part of a recapitalisation plan. The deal was completed in June, with the management retaining a significant interest. The company operates from 65 locations across 14 south and south western states.

Neff generated rental revenues of $230 million last year but lost $13 million, compared with a $6 million profit in 2004.
A great deal of the loss is due to the company’s heavy level of indebtedness - $464.5 million at the end of March. Its interest expense in 2005 was around $33 million, almost double the level for 2004.

The company hopes to raise up to $345 million from the initial public offering, on the Nasdaq stock market, with proceeds going towards reducing its debt.

The Mas family owned Neff from 1989 and are still involved through chief executive Juan Carlos Mas, the company first went public in 1998 when it raised $87 million, the company was suspended from the New York Stock Exchange in 2001 and was then traded on the OTC Bulletin Board until June 2003, when it deregistered.