Falconite, Inc.
Proposed Ticker:FCNT 2525 Wayne Sullivan Drive
Exchange:NASDAQ-National Market Paducah, KY 42002
Industry:Service (SIC Code 7353) (502) 442-4754

Filing Information
Type of Shares:Common Shares Filing Date:1/21/97
U.S. Shares Filed:0 Filing Price: -
Non-U.S. Shares Filed:0 Offering Amount: $98,164,000
Primary Shares:0 Expenses:$950,000
Secondary Shares:0 Shares Out After:

Primary Underwriting Group
ManagerTierPhone
Donaldson, Lufkin & Jenrette Securities Corp.Lead Manager (212) 371-0641
William Blair & CompanyCo-manager (312) 364-8990

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Thompson Coburn
Bank's Law Firm: Skadden, Arps, Slate, Meagher & Flom
Auditor: KPMG Peat Marwick

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 9/30/96 9/30/95 9/30/96
Revenue:$35.66$35.01$25.27Assets:$82.67
Net Income:$3.77$3.85$2.74Curr Assets:
EPS:Liabilities:$68.59
Prior EPS:$9.93$6.87Curr Liabilities:
Cash Flow/Oper:$9.29Equity:$14.08
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a leading rental equipment company serving a diverse range of more than 5,000 active commercial customers from locations in nine southern and midwestern states. The company's rental fleet includes over 3,000 units and consists primarily of large equipment, such as aerial work platforms, cranes and forklifts, as well as other industrial and construction equipment. The company rents equipment on a daily, weekly and monthly basis and, occasionally, for periods of up to one year. The company also is a distributor of new equipment for several leading manufacturers and sells used equipment from its rental fleet, in addition to complementary parts, supplies and accessories. The company's customers operate in a wide range of industries, including commercial construction, chemical, petrochemical, pulp and paper, automotive and utilities.

Use of Proceeds
The proceeds from the proposed offering will be used to repay substantially all outstanding indebtedness of the company. Remaining proceeds, together with future borrowings, will be used for rental equipment purchases, start-up location costs and possible future acquisitions.

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