United Rentals last week announced the redemption, effective Sept. 29, of $63 million of its 6½ percent convertible quarterly income preferred securities. The QUIPS, of which $222 million are currently outstanding, were issued in August 1998 by United Rentals Trust I.
The redemption price will be 101.3 percent, together with accrued and unpaid dividends to, but excluding, the Sept. 29th redemption date. Payment of the redemption price will be made to those holders of QUIPS being redeemed who are registered holders as of the record date, Sept. 14, 2006.
"We believe the QUIPS redemption represents an effective use of cash,” said Martin Welch, executive vice president and chief financial officer for United Rentals. “Although the write-off of the related unamortized debt issuance costs will result in a slightly negative impact for Q3 2006 earnings, the redemption will reduce our diluted share count and be accretive going forward."
A notice of redemption is being sent by the trustee to the registered holders of the QUIPS. Copies of the notice of redemption may be obtained from The Bank of New York, the paying agent for the QUIPS, by calling Bondholder Relations at 1-800-254-2826. The CUSIP numbers for the QUIPS are 91136H306 and 91136H207.