General Finance Corporation (NASDAQ: GFN), (NASDAQ: GFNCL) and (NASDAQ: GFNCZ) (“General Finance”) today announced that the initial public offering (the “Australian IPO”) of its subsidiary Royal Wolf Holdings Limited (“Royal Wolf”) closed on May 30, 2011 in Australia. Royal Wolf raised gross proceeds of A$91.5 million from the issue of 50 million new ordinary shares at a price of A$1.83 per share. The shares are expected to begin trading on the Australian Securities Exchange under the symbol “RWH” on or about May 31, 2011 on a deferred settlement basis and on or about June 7, 2011 on a normal settlement basis. Based on the Australian IPO offering price, Royal Wolf would have an estimated market capitalization of approximately A$183.7 million. Credit Suisse acted as the sole lead manager, underwriter and bookrunner for the offering.
At the completion of the offering, General Finance and Royal Wolf directors and management owned 50.2% of Royal Wolf, and the public owned 49.8% of Royal Wolf.
General Finance and Royal Wolf will use the net proceeds of the Australian IPO to, among other things, prepay in full Bison Capital’s subordinated notes at Royal Wolf, repurchase Bison Capital’s 13.8% ownership of the parent company of Royal Wolf, reduce senior borrowings at Royal Wolf and Pac-Van and for general working capital purposes. In conjunction with the Australian IPO, the senior secured credit facility of Royal Wolf will be amended to, among other things, extend its maturity to June 2014.
Ronald Valenta, General Finance’s President and Chief Executive Officer, stated, “We are very pleased with the closing of the Royal Wolf initial public offering, the work of the Royal Wolf team to complete the offering and the addition of talented and experienced independent directors to the Royal Wolf board. The offering significantly recapitalizes Royal Wolf’s balance sheet and, along with its increasing free cash flow and amended ANZ senior credit facility, not only provides Royal Wolf with the foundation for its future growth, but also provides us at the corporate level with capital to satisfy the Bison Capital put option and assist Pac-Van in complying with financial covenants under its senior credit facility.”