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UNITED RENTALS, INC. 8-K Report, Material Agreement (May 13, 2016)

Reports
Material Agreements·Financial Events·Other Events+1
Filing Date
Filed May 13, 2016
Period End
May 13, 2016
Security
URI
In the record · 2016–202610-K1110-Q328-K170

URI filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 170 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Oct ’18Oct ’18
  2. Leadership change8-K · Sep ’20Sep ’20
  3. Deal closed8-K · Dec ’22Dec ’22
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed May 13, 2016. Cited figures are marked; the original filing is the authoritative source.

United Rentals, Inc. (URI) announced through its subsidiary United Rentals (North America), Inc. (URNA) the successful completion of a $750 milliona 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.

02—Key points

Key Highlights

  1. Completion of a $750 million offering of 5.875% Senior Notes due 2026 by United Rentals (North America), Inc.
  2. Notes mature on September 15, 2026, with semi-annual interest payments at 5.875% starting September 15, 2016.
  3. The notes are guaranteed on a senior basis by United Rentals, Inc. and certain domestic subsidiaries.
  4. URNA has optional redemption rights starting September 15, 2021, with varying redemption prices.
  5. A 'make-whole' premium redemption is possible before September 15, 2021, and a partial redemption using equity proceeds is allowed before September 15, 2019.
  6. A change of control event triggers a mandatory offer to repurchase the notes at 101% of the principal amount.
  7. The indenture includes standard covenants limiting liens, indebtedness, asset dispositions, and restricted payments, with potential waivers for investment-grade ratings.

03—Questions

Frequently Asked Questions

  1. What was the primary purpose of this 8-K filing?

    The primary purpose of this 8-K filing was to report the material definitive agreement related to the issuance and sale of $750 million aggregate principal amount of 5.875% Senior Notes due 2026 by United Rentals (North America), Inc. (URNA), a subsidiary of United Rentals, Inc. (URI).

  2. Who are the guarantors of these new notes?

    The notes are guaranteed on a senior basis by United Rentals, Inc. (URI) and certain domestic subsidiaries of URNA. Foreign or unrestricted subsidiaries do not provide guarantees.

  3. What are the key terms and conditions of these Senior Notes?

    The notes mature on September 15, 2026, bear a 5.875% annual interest rate payable semi-annually, and are senior obligations of URNA, ranking equally with other senior debt but junior to secured debt. URNA has redemption options, including a change of control put option for noteholders.

  4. Are there any covenants or restrictions associated with these notes?

    Yes, the indenture governing the notes includes covenants that restrict URNA and its restricted subsidiaries from engaging in certain activities, such as incurring additional liens or indebtedness, selling significant assets, or making restricted payments. However, many of these covenants will not apply if the notes achieve investment-grade ratings from specified agencies and no default is ongoing.

04—Continue

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