Greenwich, Conn., and Park Ridge, N.J. — United Rentals recently priced an offering of $500 million aggregate principal amount of 10.875 percent senior notes due 2016. The company plans to use the proceeds from the offering to purchase or retire outstanding senior indebtedness, pay down outstanding borrowings under its senior secured asset-backed revolving credit facility and other general corporate purposes.
United Rentals had previously announced a proposed offering of $300 million and the offering size was increased to $500 million based on market demand. Net proceeds from the sale of the notes, after underwriting discounts and commissions, fees and expenses, will be $471.2 million. The notes will be sold to qualified institutional buyers. The company expected the offering to close June 9, subject to customary closing conditions.
Hertz Global Holdings also held a public offering of common stock and convertible senior notes.
Hertz Holdings offered about 40 million shares of common stock in an underwritten registered public offering. In connection with the offering, Hertz granted the underwriters a 30-day option to purchase up to an additional 6 million shares of common stock. Investment funds associated with Clayton, Dubilier & Rice and The Carlysle Group, existing Hertz stockholders, were expected to purchase at least $150 million worth of common stock, a substantially concurrent transaction expected to close after the public offering of common stock.
Hertz also said it intends to offer about $250 million aggregate principal amount of convertible senior notes due June 1, 2014, in an underwritten registered public offering. In connection with this offering, Hertz Holdings intends to grant the underwriters a 30-day option to purchase up to an additional $37.5 million aggregate principal amount of convertible senior notes, which will be convertible into cash, shares of Hertz Holdings common stock, or a combination of cash and shares, at the option of Hertz Holdings. The offering price, interest rate, conversion price and other terms of the notes will be determined by Hertz Holdings and the underwriters.
Hertz Holdings intends to use the proceeds from the offerings to increase its liquidity and for general corporate purposes, including the repayment of consolidated debt.
Hertz Global Holdings is the parent company of Hertz Equipment Rental Corp., No. 4 on the RER 100.
Based in Greenwich, Conn., United Rentals is No. 1 on the RER 100.