Summary
United Rentals, Inc. (URI) filed an 8-K on July 23, 2008, primarily to announce the final results of its "modified Dutch auction" tender offer. The company successfully repurchased approximately 27.16 million shares of its common stock at a price of $22.00 per share, which expired on July 16, 2008. This significant share buyback will impact the company's capital structure and future earnings per share. The filing also detailed the consequential adjustments made to the conversion terms of two of its convertible debt instruments: the 6-1/2% Convertible Subordinated Debentures (underlying QUIPs) and the 1-7/8% Convertible Senior Subordinated Notes. The conversion price for the Debentures was adjusted to $41.0224, and the conversion rate for the Notes was adjusted to 45.8160 shares per $1,000 principal, both reflecting the impact of the substantial share repurchase.
Key Highlights
- 1United Rentals completed a "modified Dutch auction" tender offer, repurchasing 27,160,000 shares of common stock.
- 2The repurchase price was set at $22.00 per share.
- 3The tender offer expired on July 16, 2008.
- 4The conversion price of the 6-1/2% Convertible Subordinated Debentures (underlying QUIPs) was adjusted to $41.0224.
- 5The conversion rate of the 1-7/8% Convertible Senior Subordinated Notes was adjusted to 45.8160 shares per $1,000 principal.
- 6Jenne K. Britell was elected Chairman of the Board of Directors on July 21, 2008.