United Rentals Announces Proposed Offering of $750 Million of Senior Notes due 2027
October 24 2016 - 7:57AM
Business Wire
United Rentals, Inc. (NYSE:URI) today announced that its
subsidiary, United Rentals (North America), Inc. (“URNA”), is
offering $750 million principal amount of Senior Notes due 2027
(the “Notes”) in a registered public offering.
The Notes offered by URNA will rank:
- equally in right of payment with all of
URNA’s existing and future senior indebtedness,
- effectively junior to any of URNA’s
existing and future secured indebtedness, and
- senior in right of payment to any of
URNA’s future subordinated indebtedness.
URNA’s obligations under the Notes will be guaranteed on a
senior unsecured basis by United Rentals, Inc. and certain of
URNA’s domestic subsidiaries.
Net proceeds from the sale of the Notes are expected to be
approximately $739 million, after underwriting discounts and
commissions and payments of estimated fees and expenses. URNA
intends to use the net proceeds from its offering of the Notes and
additional borrowings of $166 million under its senior secured
asset-based revolving credit facility to redeem $850 million of the
outstanding $1,325 million principal amount of its 7.625% Senior
Notes due 2022 at a make whole redemption price that is currently
estimated to be 106.418%, plus interest accrued to, but excluding,
the date of redemption, and to pay the related expenses.
Morgan Stanley, BofA Merrill Lynch, Barclays, Citigroup,
Deutsche Bank Securities, J.P. Morgan, MUFG, Scotiabank and Wells
Fargo Securities are the joint book-running managers for the
offering, with Morgan Stanley serving as lead book-running
manager.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
The securities being offered have not been approved or disapproved
by any regulatory authority, nor has any such authority passed upon
the accuracy or adequacy of the prospectus supplements or the shelf
registration statement or prospectus.
URI has filed a registration statement (including a prospectus
and a related preliminary prospectus supplement) with the U.S.
Securities and Exchange Commission (“SEC”) for the offering to
which this communication relates. Before you invest, you should
read the preliminary prospectus supplement and prospectus in that
registration statement and other documents URI has filed with the
SEC for more complete information about URI and this offering. You
may get these documents for free by visiting EDGAR on the SEC’s
website at http://www.sec.gov. Alternatively, copies of the
preliminary prospectus supplement and accompanying prospectus for
the offering may be obtained by contacting Morgan Stanley & Co.
LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New
York, NY 10014, by emailing prospectus@morganstanley.com or by
calling +1-866-718-1649.
About United Rentals
United Rentals, Inc. is the largest equipment rental company in
the world. The company has an integrated network of 890 rental
locations in 49 states and every Canadian province. The company’s
approximately 12,500 employees serve construction and industrial
customers, utilities, municipalities, homeowners and others. The
company offers approximately 3,200 classes of equipment for rent
with a total original cost of $9.17 billion. United Rentals is a
member of the Standard & Poor’s 500 Index, the Barron’s 400
Index and the Russell 3000 Index® and is headquartered in Stamford,
Conn. Additional information about United Rentals is available at
unitedrentals.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, and the Private Securities Litigation Reform Act of
1995, known as the PSLRA. These statements can generally be
identified by the use of forward-looking terminology such as
“believe,” “expect,” “may,” “will,” “should,” “seek,” “on-track,”
“plan,” “project,” “forecast,” “intend” or “anticipate,” or the
negative thereof or comparable terminology, or by discussions of
vision, strategy or outlook. These statements are based on current
plans, estimates and projections, and, therefore, you should not
place undue reliance on them. No forward-looking statement can be
guaranteed, and actual results may differ materially from those
projected. Factors that could affect actual results include but are
not limited to the possibility that potential debt investors will
not be receptive to the offering on the terms described above or at
all; corporate developments that could preclude, impair or delay
the above-described transactions due to restrictions under the
federal securities laws; changes in the terms or availability of
our credit facility; changes in our credit rating; changes in our
cash requirements or financial position; changes in general market,
economic, tax, regulatory or industry conditions that impact our
ability or willingness to consummate the above-described
transactions on the terms described above or at all; and our
continued access to credit markets on favorable terms. For a more
complete description of these and other possible risks and
uncertainties, please refer to our Annual Report on Form 10-K for
the year ended December 31, 2015, as well as to our subsequent
filings with the SEC. The forward-looking statements contained
herein speak only as of the date hereof, and we make no commitment
to update or publicly release any revisions to forward-looking
statements in order to reflect new information or subsequent
events, circumstances or changes in expectations.
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version on businesswire.com: http://www.businesswire.com/news/home/20161024005695/en/
United Rentals, Inc.Ted Grace, 203-618-7122Cell:
203-399-8951tgrace@ur.com
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