United Rentals, Inc. (NYSE: URI) today announced that its subsidiary (the “Trust”) has given notice of its intention to redeem up to $9,000,000 aggregate liquidation preference of its outstanding 6 ½% Convertible Quarterly Income Preferred Securities due August 1, 2028 (CUSIP Nos. 91136H306 and 91136H207) (the “Preferred Securities”) on March 1, 2013. The Trust will redeem the Preferred Securities with proceeds from the redemption by URI of up to $9,000,000 principal amount of its outstanding 6½% Convertible Subordinated Debentures due August 1, 2028 (the “Debentures”). URI has also given notice of its intention to redeem up to $9,000,000 principal amount of the Debentures on March 1, 2013. The Preferred Securities will be redeemed at a redemption price equal to 100% of the principal amount of the Preferred Securities redeemed, plus accrued and unpaid distributions to but excluding the redemption date.
The Preferred Securities to be redeemed are convertible at any time prior to the close of business on February 27, 2013 into a portion of the Debentures, which will immediately be converted at a conversion rate of 1.2188 shares of common stock for each $50 in aggregate principal amount of Debentures (equal to a conversion price of $41.0224 per share of Common Stock).
Because not all outstanding Preferred Securities are being redeemed, the Preferred Securities to be redeemed will be selected by the trustee for the Preferred Securities in accordance with the requirements of the indenture governing the Preferred Securities.
The Bank of New York Mellon, the trustee for the Preferred Securities, is distributing a Notice of Redemption to all registered holders of the Preferred Securities on January 29, 2013. Copies of such Notice of Redemption and additional information relating to the procedure for redemption and/or conversion of the Preferred Securities may be obtained from The Bank of New York Mellon Bondholder Relations by calling 1-800-254-2826.
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