United Rentals Announces Proposed Add-On Offering of $250 Million of 5.875% Senior Notes Due 2026 & $250 Million of 5.500% Se...
February 22 2017 - 8:07AM
Business Wire
United Rentals, Inc. (NYSE: URI) (“United Rentals”) today
announced that its subsidiary, United Rentals (North America), Inc.
(“URNA”), is offering $250 million aggregate principal amount of
its 5.875% Senior Notes due 2026 (the “Additional 2026 Notes”) and
$250 million aggregate principal amount of its 5.500% Senior Notes
due 2027 (the “Additional 2027 Notes”, and together with the
Additional 2026 Notes, the “Additional Notes”) in a registered
public offering. The Additional 2026 Notes will be part of the same
series as the $750 million aggregate principal amount of 5.875%
Senior Notes due 2026 issued by URNA on May 13, 2016. The
Additional 2027 Notes will be part of the same series as the $750
million aggregate principal amount of 5.500% Senior Notes due 2027
issued by URNA on November 7, 2016.
The Additional 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 Additional Notes will be guaranteed
on a senior unsecured basis by United Rentals and certain of URNA’s
domestic subsidiaries.
Aggregate net proceeds from the sale of the Additional Notes are
expected to be approximately $492 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 Additional Notes and additional borrowings of approximately
$523 million under its senior secured asset-based revolving credit
facility (the “ABL Facility”) to finance a portion of the $965
million purchase price for URNA’s previously announced pending
acquisition of NES Rentals Holdings II, Inc., a large rental
equipment company specializing in aerial equipment (the “NES
Acquisition”), and to pay related fees and expenses. Pending the
closing of the NES Acquisition, the net proceeds from the offering
will be used to repay borrowing under the ABL Facility. URNA
expects to then borrow under the ABL Facility to fund the NES
Acquisition. In the event the NES Acquisition is not consummated,
the net proceeds from the offering that were used to repay
borrowing under the ABL Facility may be reborrowed for general
corporate purposes.
Wells Fargo Securities, BofA Merrill Lynch, Morgan Stanley,
Barclays, Citigroup, Deutsche Bank Securities, J.P. Morgan, MUFG
and Scotiabank are the joint book-running managers for the
offering, with Wells Fargo Securities 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.
United Rentals 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
United Rentals has filed with the SEC for more complete information
about United Rentals 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 Wells Fargo Securities, LLC,
Attention: Wells Fargo Securities Customer Service, 608 2nd Avenue,
South Minneapolis, MN 55402, (800) 645-3751 or via email at
wfscustomerservice@wellsfargo.com.
About United Rentals
United Rentals is the largest equipment rental company in the
world. The company has an integrated network of 887 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 $8.99 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 cause actual results to differ
materially from those projected 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, 2016, 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/20170222005823/en/
United RentalsTed Grace, (203) 618-7122Cell: (203)
399-8951tgrace@ur.com
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