United Rentals subsidiary prices $2.5 billion of investment‑grade senior notes
United Rentals (North America), Inc., a subsidiary of United Rentals, Inc., priced a $2.5 billion senior‑note offering in three tranches: $700 million at 5.550% due 2029, $800 million at 5.750% due 2031 and $1 billion at 6.200% due 2036. The notes are guaranteed by the parent on a senior unsecured basis and represent the subsidiary’s first investment‑grade debt issuance. Net proceeds of about $2.476 billion will be used to repay the senior secured term‑loan facility and to reduce other borrowings, with any remaining amount for general corporate purposes. The offering was managed by J.P. Morgan, BofA, Goldman Sachs and Wells Fargo as joint book‑running managers.
Why it matters
The company says the expected $2.476 billion in net proceeds will allow it to retire its term‑loan debt and lower balances on its asset‑based revolving credit facility, strengthening its balance sheet and credit profile.
Key facts
- 1The total principal amount of the offering is $2.5 billion. tradingview.com
- 2The offering consists of $700 million of 5.550% notes due 2029, $800 million of 5.750% notes due 2031 and $1 billion of 6.200% notes due 2036. finance.yahoo.com
- 3Aggregate net proceeds are expected to be approximately $2.476 billion after discounts and expenses. finance.yahoo.com
- 4Proceeds will be used to repay the senior secured term‑loan credit facility in full and to reduce borrowings under the senior secured asset‑based revolving credit facility and accounts‑receivable securitization facility, with any remainder for general corporate purposes. finance.yahoo.com
- 5The notes are guaranteed on a senior unsecured basis by United Rentals, Inc.. finance.yahoo.com
- 6J.P. Morgan, BofA Securities, Goldman Sachs and Wells Fargo serve as joint book‑running managers for the offering. investing.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.