Summary
United Rentals, Inc. (URI) filed an 8-K on October 25, 2012, announcing two key financial events. Firstly, its subsidiary, United Rentals (North America), Inc. (URNA), is undertaking a registered public offering of senior unsecured notes. The proceeds from this offering, along with additional borrowings, will be used to redeem URNA's 10 7/8% Senior Notes due 2016. This redemption will include a call premium, estimated at 110.966%, and accrued interest. Management noted that this premium will be treated as interest expense and will not negatively impact EBITDA or adjusted earnings per share. Secondly, the filing includes the unaudited pro forma condensed combined statement of income for the nine months ended September 30, 2012. This statement reflects the significant acquisition of RSC Holdings Inc. by United Rentals. Investors should note that these pro forma results are indicative and may not represent actual future financial performance or what would have been achieved had the acquisition been completed earlier.
Key Highlights
- 1URNA announces registered public offering of senior unsecured notes.
- 2Proceeds to be used for early redemption of 10 7/8% Senior Notes due 2016.
- 3Redemption will incur a call premium of approximately 110.966% plus accrued interest.
- 4Call premium will be recorded as interest expense, not impacting EBITDA or adjusted EPS.
- 5Filing includes unaudited pro forma condensed combined income statement for nine months ended September 30, 2012.
- 6Pro forma statement reflects the acquisition of RSC Holdings Inc.