Summary
United Rentals, Inc. (URI) announced through its subsidiary United Rentals (North America), Inc. (URNA) the successful completion of a $750 million offering of 5.875% Senior Notes due 2026. These notes are senior obligations of URNA, ranking equally with its existing senior indebtedness and junior to secured debt, and are guaranteed on a senior basis by URI and certain domestic subsidiaries. This financing strengthens the company's capital structure and provides long-term funding. The covenants in the indenture are standard for such offerings, with certain restrictions easing if the notes achieve investment-grade ratings. The filing also includes related underwriting and legal documentation.
Key Highlights
- 1Completion of a $750 million offering of 5.875% Senior Notes due 2026 by United Rentals (North America), Inc.
- 2Notes mature on September 15, 2026, with semi-annual interest payments at 5.875% starting September 15, 2016.
- 3The notes are guaranteed on a senior basis by United Rentals, Inc. and certain domestic subsidiaries.
- 4URNA has optional redemption rights starting September 15, 2021, with varying redemption prices.
- 5A 'make-whole' premium redemption is possible before September 15, 2021, and a partial redemption using equity proceeds is allowed before September 15, 2019.
- 6A change of control event triggers a mandatory offer to repurchase the notes at 101% of the principal amount.
- 7The indenture includes standard covenants limiting liens, indebtedness, asset dispositions, and restricted payments, with potential waivers for investment-grade ratings.