Simpson Thacher represented J.P. Morgan Securities LLC and the other initial purchasers in connection with a Rule 144A/Regulation S offering by Alta Equipment Group Inc. (“Alta”) of $500 million aggregate principal amount of 9.000% Senior Secured Second Lien Notes due 2029. Alta intends to use the net proceeds from the offering, together with the proceeds of new borrowings under its first lien facilities, (i) to refinance a portion of its existing ABL facility and its existing floor plan facility prior to the amendments thereto, pay accrued and unpaid interest thereon, and pay related fees and expenses thereto, (ii) to redeem all of its outstanding 5.625% Senior Secured Second Lien Notes due 2026, pay the premium, accrued and unpaid interest thereon, and pay related fees and expenses thereto, and (iii) for general corporate purposes to the extent there are any remaining proceeds.
Alta owns and operates one of the largest integrated equipment dealership platforms in North America. Through its branch network, Alta sells, rents and provides parts and service support for several categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, other construction equipment and allied products.
The Simpson Thacher team included Dave Azarkh, John O’Connell, Matt Petrone and Kelly Johnson (Capital Markets); Jonathan Pall and Soogy Lee (Collateral); Pasco Struhs (Executive Compensation and Employee Benefits); Corina Holland, Kate Mirino and Riley Morrow (Intellectual Property); Jonathan Cantor (Tax); and Jennie Getsin (Blue Sky). J. Carr Gamble and Leena Sanka also provided valuable assistance.