By Mariana Santibanez

NEW YORK, Feb 11 (IFR) - Investor orders for BlueLine Rental's USD250m payment-in-kind (PIK) toggle are in excess of USD2bn, according to a market source on Tuesday.

Price talk on the deal was announced earlier at 9.75%-10%, and the trade is expected to price later today. Bank of America Merrill Lynch is left lead on the transaction, alongside bookrunners Barclays, Goldman Sachs and Morgan Stanley.

The proceeds will pay financial sponsor owner Platinum Equity a dividend to cover the cash it put into the leveraged buyout of Volvo Construction Equipment Rents (VCE), since renamed BlueLine Rental, in December.

Platinum paid USD1.1bn to buy VCE two months ago from Swedish truck maker Volvo VOLVb.ST , using USD201m of cash, a USD760m senior secured note that has performed strongly in the secondary, and a USD156m asset-based revolver.

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(Reporting by Mariana Santibanez, IFR Markets; Writing by Natalie Harrison; Editing by Marc Carnegie)

((natalie.harrison@thomsonreuters.com)(646 223 4070)(Reuters Messaging: natalie.harrison.thomsonreuters.com@reuters.net))

Keywords: BLUELINE PIK/HIGHYIELD