Generac Announces Proposed Offering of $425 Million of Senior Notes

WAUKESHA, Wis., May 11 -- Generac Holdings Inc., a designer and manufacturer of generators and other engine powered products, today announced that its indirect wholly owned subsidiary, Generac Power Systems, Inc., is proposing to offer and sell, subject to market and other conditions, up to $425 million in aggregate principal amount of its senior notes due 2020.

The notes will be offered only to qualified institutional buyers in accordance with Rule 144A and to non-U.S. Persons under Regulation S under the Securities Act of 1933, as amended (the "Securities Act").

The purpose of the proposed offering is to, among other things, fund a special cash dividend on the Company's outstanding common stock, to refinance the Company's existing indebtedness and to pay related fees and expenses.

The notes to be offered will not be registered under the Securities Act or any state securities laws. As a result, they may not be offered or sold in the United States or to any U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.