United Rentals Announces $500 Million in Senior Subordinated Notes Offering
October 20 2010 - 7:05AM
Business Wire
United Rentals, Inc. (NYSE: URI) (“URI”) today announced that
its subsidiary, United Rentals (North America), Inc. (“URNA”), is
offering $500 million principal amount of senior subordinated notes
due 2020 in a registered public offering.
The senior subordinated notes offered by URNA will rank junior
in right of payment to all of its existing and future senior
indebtedness, senior to any indebtedness expressly subordinated to
these notes and equally with all of its existing and future senior
subordinated indebtedness. URNA’s obligations under these notes
will be guaranteed on a senior subordinated basis by URI and
certain of URNA’s domestic subsidiaries.
URNA intends to use the net proceeds from its offering to redeem
its 7 ¾% Senior Subordinated Notes due 2013 and to pay for a call
premium and accrued but unpaid interest to the date of redemption,
to reduce borrowings under its ABL facility, and to pay related
expenses.
Morgan Stanley, BofA Merrill Lynch and Wells Fargo Securities
are the joint book-running managers for the offering, with Morgan
Stanley 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
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, 180 Varick Street,
2nd Floor, New York, NY 10014, Attn: Prospectus Department,
866-718-1649 or via email at prospectus@morganstanley.com, BofA
Merrill Lynch, Attention: Syndicate Operations, 4 World Financial
Center, New York, NY, 10080, 800-294-1322 or email:
dg.prospectus_requests@baml.com, or Wells Fargo Securities, 301
South College Street, 6th Floor, Charlotte, NC 28202, Attn: High
Yield Syndicate, (704) 715-7035.
About United Rentals
United Rentals, Inc. is the largest equipment rental company in
the world, with an integrated network of 549 rental locations in 48
states and 10 Canadian provinces. The company’s approximately 7,400
employees serve construction and industrial customers, utilities,
municipalities, homeowners and others. The company offers for rent
approximately 2,900 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. Such statements can 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 strategy or outlook.
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) inability to benefit from
government spending associated with stimulus-related construction
projects; (3) 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; (4) 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; (5) inability to
access the capital that our businesses or growth plans may require;
(6) increases in our maintenance and replacement costs as we age
our fleet, and decreases in the residual value of our equipment;
(7) inability to sell our new or used fleet in the amounts, or at
the prices, we expect; (8) rates we can charge and time utilization
we can achieve being less than anticipated; and (9) costs we incur
being more than anticipated, and the inability to realize expected
savings in the amounts or time frames planned. For a fuller
description of these and other possible uncertainties, please refer
to our Annual Report on Form 10-K for the year ended December 31,
2009, 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.
United Rentals (NYSE:URI)
Historical Stock Chart
From May 2024 to Jun 2024
United Rentals (NYSE:URI)
Historical Stock Chart
From Jun 2023 to Jun 2024