Summary
United Rentals, Inc. (URI) filed an 8-K report on February 25, 2020, detailing the successful completion of a $750 million offering of 4.000% Senior Notes due 2030 by its subsidiary, United Rentals (North America), Inc. (URNA). These notes are senior unsecured obligations of URNA, guaranteed by URI and certain domestic subsidiaries, ranking equally with other senior indebtedness but junior to secured debt. The issuance, made under a shelf registration statement, is a significant financing event aimed at strengthening the company's capital structure and providing financial flexibility.
Key Highlights
- 1Completed a $750 million offering of 4.000% Senior Notes due 2030.
- 2Notes are issued by subsidiary URNA and guaranteed by URI and certain domestic subsidiaries.
- 3The notes mature on July 15, 2030, with semi-annual interest payments starting July 15, 2020.
- 4URNA has the option to redeem the notes starting July 15, 2025, with varying redemption prices.
- 5A 'make-whole' premium applies for redemption prior to July 15, 2025.
- 6The indenture includes covenants on liens and asset sales, with exceptions tied to investment grade ratings.
- 7URNA may redeem up to 40% of the notes with equity offering proceeds before July 15, 2023.