United Rentals announces notes offering, plans to redeem older offering
New notes offering priced at $1.5B
United Rentals is raising $1.5 billion by selling senior notes, which come due in 2033, and plans to use part of that money to pay off a $500 million debt that comes due in 2027.
After fees, United Rentals expects to bring in about $1.49 billion from the sale, according to a United Rentals release today. In addition to paying off older notes, the company may also use the funds for general business needs, such as paying down its credit line.
The company has officially announced that it will redeem the older $500 million notes on Dec. 24, paying back the full amount plus interest owed, according to a separate release today. That payoff will only happen if United Rentals completes the new $1.5 billion fundraising and has enough borrowing capacity to move money as needed.
Both offerings were conducted under exemptions from SEC registration and are limited to qualified institutional buyers or certain offshore investors, according to the respective releases. The company emphasized that the announcements do not constitute offers to sell securities.
United Rentals, the world’s largest equipment rental company, operates 1,639 locations in North America and serves construction, industrial and municipal customers with a fleet originally costing $22.8 billion, according to the release. The company is headquartered in Stamford, Conn.
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