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UNITED RENTALS, INC. 8-K Report, Material Agreement (May 10, 2019)

Reports
Material Agreements·Financial Events·Other Events+1
Filing Date
Filed May 10, 2019
Period End
May 10, 2019
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 · Jul ’18Jul ’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 10, 2019. Cited figures are marked; the original filing is the authoritative source.

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 milliona 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.

02—Key points

Key Highlights

  1. United Rentals completed an offering of $750 million in 5.25% Senior Notes due 2030.
  2. The notes are issued by United Rentals (North America), Inc. (URNA) and guaranteed by United Rentals, Inc. (URI) and domestic subsidiaries.
  3. The offering was made under a previously filed shelf registration statement.
  4. The notes bear interest at 5.25% per annum, payable semi-annually.
  5. URNA has the option to redeem the notes starting January 15, 2025, with varying redemption prices.
  6. A make-whole premium applies to redemptions before January 15, 2025, and a 40% redemption is possible using equity offering proceeds before January 15, 2023.
  7. The indenture includes covenants restricting liens, mergers, asset sales, and restricted payments, with potential relief for investment-grade rated notes.

03—Questions

Frequently Asked Questions

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

    This 8-K filing is primarily to report the completion of a material definitive agreement, specifically the issuance of $750 million in 5.25% Senior Notes due 2030 by United Rentals (North America), Inc. (URNA).

  2. What are the key terms of the new Senior Notes?

    The Senior Notes have a principal amount of $750 million, a coupon rate of 5.25%, and mature on January 15, 2030. Interest is payable semi-annually. They are senior unsecured obligations of URNA, guaranteed by URI and certain domestic subsidiaries.

  3. Under what conditions can United Rentals redeem these notes early?

    United Rentals can redeem the notes at its option starting January 15, 2025, at specified premiums that decrease over time. Additionally, prior to January 15, 2025, URNA can redeem up to 40% of the notes using proceeds from equity offerings, and must offer to repurchase the notes at 101% of par upon a change of control event.

  4. What are the main restrictions and covenants associated with these notes?

    The indenture includes covenants that limit the incurrence of liens, mergers and consolidations, sale of assets, and restricted payments (like dividends and stock repurchases). These covenants may be suspended if the notes achieve investment grade ratings from specified agencies and no default is ongoing.

04—Continue

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