Deutsche Bank on Friday launched an amend-to-extend transaction for NES Rentals. The issuer is seeking to extend the maturity of its $82.8 million second-lien term loan by 15 months, to October 2014, according to sources.

Lenders are offered a boost in spread to L+1,150, from L+825 currently; the 1.75% LIBOR floor would remain intact, sources said. The loan, which is currently callable at 103, would be covered by a 101 soft call premium until April 2013, then by a 101 hard call premium for the next 12 months and a 102 hard call premium thereafter.

The company is seeking to extend the maturity of the entire tranche, sources said, noting that lenders who are unwilling to extend their positions will be replaced with new lenders.

Existing lenders are offered a 50 bps fee to extend their positions and new lenders are offered 75 bps, according to sources. Also, existing lenders will be paid out per the current 103 call premium, sources added.

Consents are due on May 17, sources added.

Deutsche Bank, Bear Stearns and Bank of America syndicated the term loan, originally $325 million, to support the buyout of the equipment-rental company by Diamond Castle Holdings. The issuer repaid a portion of the second-lien term loan in 2010 with proceeds from a $150 million issue of 12.25% notes due 2015, which were issued at 99. The issuer also repurchased some of the second-lien term debt through a series of subpar buybacks.

NES Rentals is rated B/Caa1, while the proposed extended loan is rated CCC+/Caa2. – Kerry Kantin