RSC Prices Low IPO

COTTSDALE, Ariz. (AP) – Shares of RSC Holdings Inc. are expected to begin trading on the New York Stock Exchange Wednesday after the rental equipment provider's initial public offering priced at $22 per share, below the anticipated price range.


According to regulatory filings with the Securities and Exchange Commission, RSC Holdings expected the offering to price between $23 and $25 per share.


Of the 20.8 million shares offered, RSC Holdings will sell 12.5 million shares and private equity funds associated with company stockholders will sell the remaining 8.3 million shares.


The stockholders, Ripplewood Holdings LLC, Oak Hill Capital Management LLC and Atlas Copco Finance S.a.r.l, have also granted the underwriters an option to purchase up to an additional 3.1 million shares.


RSC Holdings intends to use the net proceeds from the offering to repay some debt and pay an associated prepayment penalty and other expenses related to the offering. The company will not receive any proceeds from the sale of shares by the selling stockholders.


RSC Holdings operates 459 RSC Equipment Rental locations in 39 U.S. states and four Canadian provinces. The company primarily serves customers in the non-residential construction and industrial markets.


RSC Holdings reported $178.5 million in net income available to stockholders in 2006 on sales of $1.65 billion. The company will have 103.1 million shares outstanding after the offering.


Deutsche Bank Securities, Morgan Stanley and Lehman Brothers are serving as the lead underwriters for the offering. Robert W. Baird, Banc of America Securities, CIBC World Markets, Goldman Sachs and JP Morgan Securities are also acting as underwriters.


RSC Holdings shares will be listed under the symbol “RRR.”