Shares of specialty equipment rental provider Nesco Holdings, Inc. (NSCO) are rising more than 16% Tuesday morning at $7.20.
Monday, the company said it has entered into an agreement with a group of investors including Federated Hermes Kaufmann Funds, Wells and Clearbridge among others, for the private placement of $140 million of common stock to finance in part the previously announced acquisition of Custom Truck One Source.
The Investors have agreed to purchase 28 million shares of the company's common stock at $5.00 per share.
This private placement is expected to replace the need for Platinum Equity's backstop, which represented $100 million of the over $850 million of equity that Platinum Equity has committed in connection with the transaction. An affiliate of Platinum Equity, LLC had committed to invest over $850 million in Nesco in exchange for newly issued common stock at $5.00 per share.
Early this month, Nesco had announced its decision to buy Custom Truck One Source for about $1.47 billion.
NSO has traded in the range of $1.38- $7.97 in the last one year.
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