United Rentals Announces Redemption of Remaining 14% HoldCo Notes
December 02 2009 - 5:10PM
Business Wire
United Rentals, Inc. (NYSE: URI) today announced its intention
to redeem its remaining $271 million aggregate principal amount of
outstanding 14% HoldCo Notes due 2014. The 14% HoldCo Notes will be
redeemed on December 21, 2009 at par. The company also announced
the upsizing of its $1.285 billion asset-based revolving facility
to $1.360 billion, further increasing its financial flexibility and
liquidity.
William Plummer, Chief Financial Officer of United Rentals said,
“We are continually refining our capital structure to support our
focus on long-term profitable growth, and the redemption of the 14%
HoldCo Notes both reduces our interest expense and improves our
debt maturity profile.”
Mr. Plummer continued, “The $75 million increase in availability
under the ABL, in addition to our recent bond issuances, further
demonstrates our ability to access capital even at the lowest
points in our cycle. The financial actions we have taken over the
past year support our core rental strategy and will position United
Rentals to invest the necessary capital in our business when the
economy recovers.”
About United Rentals
United Rentals, Inc. is the largest equipment rental company in
the world, with an integrated network of 580 rental locations in 48
states, 10 Canadian provinces and Mexico. The company’s
approximately 8,200 employees serve construction and industrial
customers, utilities, municipalities, homeowners and others. The
company offers for rent approximately 3,000 classes of equipment
with a total original cost of $3.8 billion. United Rentals is a
member of the Standard & Poor’s MidCap 400 Index and the
Russell 2000 Index® and is headquartered in Greenwich, Conn.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. You are cautioned that our business
and operations are subject to a variety of risks and uncertainties,
many of which are beyond our control, and, consequently, our 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 following: (1)
on-going decreases in North American construction and industrial
activities, which have significantly affected revenues and, because
many of our costs are fixed, our profitability, and which may
further reduce demand and prices for our products and services; (2)
our highly leveraged capital structure, which requires us to use a
substantial portion of our cash flow for debt service and can
constrain our flexibility in responding to unanticipated or adverse
business conditions; (3) noncompliance with financial or other
covenants in our debt agreements, which could result in our lenders
terminating our credit facilities and requiring us to repay
outstanding borrowings; (4) inability to access the capital that
our businesses or growth plans may require; and (5) rates we can
charge and time utilization we can achieve being less than
anticipated. For a more complete description of these and other
possible uncertainties, please refer to our Annual Report on Form
10-K for the year ended December 31, 2008, as well as to our
subsequent filings with the SEC. Our 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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