neff rental llC (9.625% senIor seCured notes, due 2016)
The position Bought at issue more than a year ago
Why do you like it? Neff, like many companies in the equipment rental business, got banged up when U.S. construction essentially came to a halt in 2008. It filed for bankruptcy and emerged with a clean balance sheet late in 2010.
The rental equipment market has improved along with the U.S. economy and Mr. Richardson noted Neff has been able to pay down debt and reduce its leverage to about 3x. “The company has solid asset coverage given the value of its equipment fleet versus the amount of debt outstanding,” the manager said.
Biggest risk Economic weakness causes a slowdown in construction.