What is the primary purpose of these new agreements?

The primary purpose of the Security Agreement and the Intellectual Property Security Agreement is to provide collateral for the company's 5.75% Senior Secured Notes due 2018. This means that if the company defaults on these notes, the noteholders have a claim on specific assets of the company.

What is the priority of the liens securing these notes?

The liens securing the 5.75% Senior Secured Notes due 2018 are on a second-priority basis. This means that another set of lenders (those holding the company's senior secured asset-based revolving credit facility and other first-priority lien obligations) will be paid first from the collateral in the event of a default.

What specific assets are being pledged as collateral?

The agreements involve the pledge and grant of security interests in the Grantors' assets. While the specific assets aren't detailed in the 8-K text itself, the filing refers to a Security Agreement and an Intellectual Property Security Agreement, suggesting a broad range of company assets and intellectual property are included.

URI 8-K: Material Agreements

Summary

This 8-K filing from United Rentals, Inc. (URI) on July 23, 2012, primarily reports on the entry into material definitive agreements related to security. Specifically, United Rentals, Inc. and its subsidiary, United Rentals (North America), Inc., along with certain other subsidiaries, entered into a Security Agreement and an Intellectual Property Security Agreement with Wells Fargo Bank, N.A. These agreements serve to secure the obligations of the grantors under the 5.75% Senior Secured Notes due 2018, which were governed by an Indenture dated March 9, 2012. The collateral securing these notes is on a second-priority basis, subordinate to liens securing the company's senior secured asset-based revolving credit facility and other first-priority lien obligations.

Key Highlights

1United Rentals entered into a Security Agreement and an Intellectual Property Security Agreement with Wells Fargo Bank, N.A. on July 23, 2012.
2These agreements are intended to secure the obligations related to the Company's 5.75% Senior Secured Notes due 2018.
3The collateral securing these Senior Secured Notes has a second-priority lien.
4This lien is subordinate to any first-priority liens securing the company's senior secured asset-based revolving credit facility.
5The filing includes the full text of the Security Agreement and the Intellectual Property Security Agreement as exhibits.

UNITED RENTALS, INC. 8-K Report, Material Agreement (Jul 23, 2012)

Summary

Key Highlights

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