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UNITED RENTALS, INC. 8-K Report, Acquisition Completed (May 25, 2021)

Reports
Acquisitions & Dispositions·Other Events·Exhibits & Filings
Filing Date
Filed May 25, 2021
Period End
May 25, 2021
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. Material agreement8-K · Aug ’20Aug ’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 25, 2021. Cited figures are marked; the original filing is the authoritative source.

United Rentals, Inc. (URI) has announced the successful completion of its acquisition of General Finance Corporation (GFN) through its wholly-owned subsidiary, United Rentals (North America), Inc. (URNA).

The acquisition was finalized on May 25, 2021, following a cash tender offer that commenced on April 26, 2021, and expired on May 21, 2021. The tender offer saw significant participation, with approximately 91.4%a of GFN's common stock tendered and accepted for payment. This transaction represents a significant step for United Rentals, expanding its asset rental capabilities.

The aggregate consideration for the acquisition, including assumed debt, was approximately $996 millionb. In conjunction with the completion of the merger, GFN has initiated the redemption of its outstanding Series B 8% Cumulative Preferred Stock, 9.00% Series C Cumulative Redeemable Perpetual Preferred Stock, and 7.875% Senior Securities due 2025. These redemptions are expected to be completed by June and July of 2021, respectively, and are being funded by United Rentals.

02—Key points

Key Highlights

  1. United Rentals (URI) successfully completed the acquisition of General Finance Corporation (GFN) on May 25, 2021.
  2. The acquisition was executed through a cash tender offer, with 91.4% of GFN's outstanding shares tendered and accepted.
  3. The total transaction cost, including assumed debt, amounted to approximately $996 million.
  4. The funding for the acquisition was sourced from URI's existing cash reserves and its revolving credit facility.
  5. Following the acquisition, GFN's preferred stock (Series B and C) and senior notes are being redeemed.
  6. Redemption dates for GFN's securities are scheduled for June 14, 2021 (Series B Preferred Stock), June 24, 2021 (Series C Preferred Stock), and June 24, 2021 (7.875% Senior Securities due 2025).

03—Questions

Frequently Asked Questions

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

    This 8-K filing announces the completion of United Rentals, Inc.'s (URI) acquisition of General Finance Corporation (GFN) and related actions, including the redemption of GFN's outstanding debt and preferred stock.

  2. How much did United Rentals pay to acquire General Finance Corporation?

    The aggregate consideration paid by United Rentals for the acquisition, including the assumption of $400 million in net debt, was approximately $996 million.

  3. What happens to General Finance Corporation's preferred stock and debt?

    Following the acquisition, General Finance Corporation has initiated the redemption of all its outstanding Series B 8% Cumulative Preferred Stock, 9.00% Series C Cumulative Redeemable Perpetual Preferred Stock, and 7.875% Senior Securities due 2025. These redemptions are scheduled for June 2021.

  4. How was the acquisition funded?

    United Rentals funded the acquisition using its existing cash on hand and available borrowing capacity under its senior secured asset-based revolving credit facility.

04—Continue

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