United Rentals Offers Senior Notes to Help Fund Neff Acquisition

Sept. 8, 2017

2 min read

United Rentals announced that its subsidiary United Rentals North America is offering $750 million principal amount of senior notes due 2025 and $750 million principal amount of 4.875-percent senior notes due 2028 in a registered public offering. The 2028 notes will have terms substantially identical to those of URNA’s 4.875-percent senior notes due 2028 issued last month.

Aggregate net proceeds from the sale of the notes are expected to be approximately $1.48 billion after underwriting discounts and commissions and payments of estimated fees and expenses. URNA intends to use the net proceeds to finance a portion of the $1.3 billion purchase price for the acquisition of Neff Rentals. Pending the closing of the Neff acquisition, the net proceeds from the offering will be used to repay borrowings under URNA’s senior secured asset-based revolving credit facility. URNA expects to then borrow under the ABL facility to fund the purchase price of the Neff acquisition.

If the Neff acquisition is not consummated on or before Aug. 16, 2018, URNA will be required to redeem the notes at a redemption price equal to 100 percent of the principal amount, plus interest.

United Rentals has 960 rental locations in 49 states and every Canadian province. Based in Stamford, Conn., United Rentals is No. 1 on the RER 100.

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.