United Rentals' Unit Plans $750 Million Senior Notes Offering

United Rentals, Inc. URI disclosed that its subsidiary, United Rentals (North America), Inc. ("URNA"), was planning to come out with an offering $750 million principal amount of Senior Notes due 2026 .

According to the company, the 2026 Notes offered by URNA will rank equally in right of payment with all of URNA's current and future senior indebtedness, effectively junior to any of URNA's current and future secured indebtedness, and senior in right of payment to any of its current and future subordinated indebtedness.

United Rentals said URNA's obligations under the Notes would be guaranteed on a senior unsecured basis by it and some of URNA's domestic subsidiaries. The company said that the net proceeds from the sale of the Notes were expected to be approximately $739 million.

The company said URNA plans to use the proceeds from its offering of the Notes, as well as, additional borrowings of $144 million under its senior secured asset-based revolving credit facility, to redeem all its outstanding $300 million principal amount of its 8.25 percent Senior Notes due 2021. The company would redeem at a price of 104.125 percent.

United Rentals said its $550 million of the outstanding $750 million principal amount of its 7.375 percent Senior Notes due 2020 would also be redeemed at a redemption price of 103.688 percent. In all the cases, the company would pay accrued interest until the redemption date.

Shares of the company traded 0.49 percent higher on Friday.