Summary
United Rentals, Inc. (URI) filed an 8-K on May 10, 2019, to report a material definitive agreement: the completion of an offering of $750 million in aggregate principal amount of 5.25% Senior Notes due 2030 by its subsidiary, United Rentals (North America), Inc. (URNA). These senior notes are guaranteed by URI and certain of its domestic subsidiaries. The proceeds from this offering will be used according to the company's shelf registration statement. The issuance of these notes involves standard covenants, including limitations on liens, mergers, asset sales, and restricted payments. Notably, certain covenants may be eased if the notes achieve investment grade ratings. The filing also details the terms of redemption, including options for early redemption at a premium and a requirement to repurchase the notes under certain change of control events.
Key Highlights
- 1United Rentals completed an offering of $750 million in 5.25% Senior Notes due 2030.
- 2The notes are issued by United Rentals (North America), Inc. (URNA) and guaranteed by United Rentals, Inc. (URI) and domestic subsidiaries.
- 3The offering was made under a previously filed shelf registration statement.
- 4The notes bear interest at 5.25% per annum, payable semi-annually.
- 5URNA has the option to redeem the notes starting January 15, 2025, with varying redemption prices.
- 6A make-whole premium applies to redemptions before January 15, 2025, and a 40% redemption is possible using equity offering proceeds before January 15, 2023.
- 7The indenture includes covenants restricting liens, mergers, asset sales, and restricted payments, with potential relief for investment-grade rated notes.