United Rentals, Inc. (NYSE: URI) today announced that its subsidiary, United Rentals (North America), Inc. (“URNA”), is offering $850 million principal amount of Senior Notes due 2024 (the “2024 notes”) and $525 million principal amount of its 6.125% Senior Notes due 2023 (the “2023 notes,” and together with the 2024 notes, the “notes”) in registered public offerings. The 2023 notes will be part of the same series as the $400 million principal amount of 6.125% Senior Notes issued by URNA in October 2012.
The notes offered by URNA will rank equally with all of its existing and future senior indebtedness, effectively junior to any of its existing and future secured indebtedness and senior in right of payment to any of its existing and future subordinated indebtedness. URNA’s obligations under these notes will be guaranteed on a senior basis by URI and certain of URNA’s domestic subsidiaries.
URNA intends to use a portion of the net proceeds from its offering of the 2024 notes to finance in part the cash portion of the purchase price for the acquisition of National Pump, a specialty pump and industrial equipment rental businesses, and to pay related costs and expenses. The remaining net proceeds will be applied to the repayment of approximately $138 million of borrowings under its asset-based revolving credit facility.
URNA intends to use the net proceeds from its offering of the 2023 notes and cash on hand to redeem $500 million principal amount of its 9¼% Senior Notes due 2019, to pay a call premium thereon and to pay related expenses.Morgan Stanley, BofA Merrill Lynch, Wells Fargo Securities, Citigroup, Barclays, Credit Suisse and Deutsche Bank Securities are the joint book-running managers for the offerings, with Morgan Stanley as lead book-running manager. This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus supplements or the shelf registration statement or prospectus.