United Rentals, Inc. (NYSE:URI) today announced that its subsidiary, United Rentals (North America), Inc. (“URNA”), has priced its offerings of $850 million principal amount of 5.75% Senior Notes due 2024 (the “2024 notes”) and $525 million principal amount of 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 and are to be issued at a price of 105.25% to yield 5.39%.
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.
Net proceeds from the sale of the 2024 notes will be approximately $837 million. 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 business, 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 expects the 2024 notes offering to close on March 26, 2014, subject to customary closing conditions.
Net proceeds from the sale of the 2023 notes will be approximately $546 million. 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. URNA expects the 2023 notes offering to close on March 26, 2014, subject to customary closing conditions.
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