Summary
United Rentals, Inc. (URI) announced the redemption and satisfaction of its 5.75% Senior Notes due 2024, totaling $850 million. This action effectively discharges the company and its guarantors from their obligations under these notes and the related indenture, effective May 26, 2019. The redemption was executed at a price of 102.875% of the principal amount, plus accrued interest. This move indicates a proactive approach to managing its debt structure. Investors should note that this is a significant financial maneuver that could impact the company's leverage ratios and interest expense profile. The company has irrevocably deposited the necessary funds with the trustee, ensuring a clean discharge of this debt.
Key Highlights
- 1Redemption of $850 million in 5.75% Senior Notes due 2024 by United Rentals (North America), Inc.
- 2Effective redemption date of May 26, 2019.
- 3Redemption price set at 102.875% of the principal amount plus accrued interest.
- 4Satisfaction and discharge of the associated Indenture dated March 26, 2014.
- 5Release of United Rentals, Inc. and subsidiary guarantors from obligations under the notes and indenture.
- 6Sufficient funds have been irrevocably deposited with the Trustee to cover the redemption.
- 7This filing incorporates Item 1.02 (Termination of a Material Definitive Agreement) by reference to Item 8.01 (Other Events).