RSC's IPO Sells Below Expectations - Industry Beat
Construction Equipment Distribution magazine is published by the Associated Equipment Distributors, a nonprofit trade association founded in 1919, whose membership is primarily comprised of the leading equipment dealerships and rental companies in the U.S. and Canada. AED membership also includes equipment manufacturers and industry-service firms. CED magazine has been published continuously since 1920. Associated Equipment Distributors
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RSC's IPO Sells Below Expectations

CED Magazine July 2007

Article Date: 07-02-2007
Copyright(C) 2008 Associated Equipment Distributors. All Rights Reserved.

Initial public offering disappointing at $22 per share.

In its initial public offering, RSC Holdings raised $458.26 million, but the 20.83 million share offering sold for $22 per share, compared with the $23 to $25 that was forecast.

Specifically, 12.5 million shares were sold by RSC Holdings and 8.33 million were sold by private equity funds associated with Ripplewood Holdings, Oak Hill Capital Management, and Atlas Copco Finance, all of which are current stockholders of RSC Holdings. These stockholders have granted the underwriters, led by Deutsche Bank Securities, Morgan Stanley and Lehman Brothers, the option to purchase an additional 3.125 million shares to cover over- allotments.

RSC plans to use net proceeds from the IPO to repay a portion of its senior term facility, to pay an associated prepayment penalty, and to pay other fees and expenses related to the offering. The company will not receive proceeds from the sale of shares by the selling stockholders.

RSC Equipment Rental rents heavy equipment to contractors and industrial customers and is listed on the NYSE as RRR.

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