United Rentals Prices Offering of $750MM of 3.75% Senior Notes
AUG 2, 2021 - 6:17 am
United Rentals’ subsidiary, United Rentals North America, priced an offering of $750 million principal amount of 3.75% senior notes due 2032 in a registered public offering.
The notes will rank:
Equally in right of payment with all of United Rentals North America’s existing and future senior indebtedness
Effectively junior to any of United Rentals North America’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness
Senior in right of payment to any of United Rentals North America’s existing and future subordinated indebtedness
United Rentals North America’s obligations under the notes will be guaranteed on a senior unsecured basis by United Rental’s and certain of United Rentals North America’s domestic subsidiaries.
Aggregate net proceeds from the sale of the notes are expected to be approximately $743 million after underwriting discounts and commissions and payments of estimated fees and expenses. United Rentals North America expects to use the net proceeds from its offering of the notes and borrowings of approximately $286 million under its senior secured asset-based revolving credit facility to redeem all $1 billion principal amount of its 5⅞% senior notes due 2026 on or after Sept. 15, 2021, at a redemption price of 102.938%, plus interest accrued to but excluding the date of redemption, and to pay related expenses. Pending the payment of the redemption price for the 5⅞% senior notes due 2026, the net proceeds from the offering of the notes will be applied to reduce borrowings under the ABL facility. United Rentals North America expects to then borrow under the ABL Facility to fund the redemption.
Morgan Stanley, BofA Securities, Wells Fargo Securities, Citigroup, Scotiabank, MUFG, Barclays, Deutsche Bank Securities and J.P. Morgan are the joint book-running managers for the offering, with Morgan Stanley serving as the lead book-running manager.
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!
“DE&I is about building corporate strength and success, embracing the future and embracing the talent that will lead to the ultimate success and longevity of an organization.” Melba Hughes began her diversity, equity and inclusion (DE&I) work three decades ago.... read more
Dr. Arin N. Reeves, president and managing director of Nextions, a work culture advisory firm, found herself transitioning from practicing law to focusing on diversity, equity and inclusion in the workplace more than 25 years ago, but she says the... read more