Mobile Mini (MINI) Ratings Places on CreditWatch Negative by S&P

Standard & Poor's Ratings Services today said it placed its 'BB' corporate credit rating on Tempe, Ariz.-based portable storage and mobile office leasing company Mobile Mini Inc. (Nasdaq: MINI) on CreditWatch with negative implications.

We also placed our 'BB-' issue-level rating on Mobile Mini's $200 million 7.875% senior unsecured notes due 2020 on CreditWatch with negative implications.

The CreditWatch placement follows Mobile Mini Inc.'s announcement that it had entered into an agreement to buy Evergreen Tank Solutions Inc. (ETS) for $405 million to be paid in cash, which Mobile Mini will fund by increasing its ABL revolver by $100 million. We expect the acquisition to result in increased debt leverage, and the addition of a new business line (ETS is a provider of integrated liquid and solid containment solutions) could negatively affect Mobile Mini's business risk profile.

"We expect to resolve the CreditWatch placement in the coming months as more information becomes available," said Standard & Poor's credit analyst Betsy Snyder.

Key points:

• Portable storage and mobile office leasing Tempe, Ariz.-based company Mobile Mini Inc. has entered into an agreement to acquire Evergreen Tank Solutions Inc. (ETS, B-/Negative) for approximately $405 million in cash, which Mobile Mini will fund with its existing asset-based lending (ABL) revolver, which the company will upsize by $100 million.
• We are placing our ratings on Mobile Mini Inc., including the 'BB' corporate credit rating, on CreditWatch with negative implications.
• We expect the acquisition to result in increased debt leverage, and the addition of a new business line (ETS is a provider of integrated liquid and solid containment solutions) could negatively affect Mobile Mini's business risk profile.
• We expect to resolve the CreditWatch placement in the coming months as more information becomes available.

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