United Rentals Announces Full Redemption of 5.875% Senior Notes due 2026
United Rentals (NYSE: URI) announced its subsidiary, URNA, will redeem all of its $1.0 billion principal amount of 5.875% Senior Notes due 2026 on September 15, 2021. The redemption price is set at 102.938% of the principal amount plus accrued interest. URNA will use borrowings from its senior secured asset-based revolving credit facility for this redemption. The process is dependent on the availability of funds under this facility, which could delay the redemption if conditions are not met.
- Redeeming $1.0 billion in Senior Notes may enhance financial flexibility.
- Redemption price set at 102.938% indicates a proactive financial strategy.
- Redemption contingent on sufficient funds being available, which introduces uncertainty.
- Potential delays in redemption if funding conditions are not satisfied.
United Rentals, Inc. (NYSE: URI) today announced that its subsidiary, United Rentals (North America), Inc. (“URNA”), has given notice of its intention to redeem all of the outstanding
URNA has instructed Wells Fargo Bank, National Association, as the trustee for the Notes (the “Trustee”), to distribute a notice of redemption to all registered holders of the Notes on August 13, 2021. Copies of such Notice of Redemption and additional information relating to the procedure for redemption of the Notes may be obtained from Wells Fargo Bank, National Association by calling 1-800-344-5128.
URNA expects to use borrowings under its senior secured asset-based revolving credit facility to redeem the Notes and to pay related expenses.
The redemption is subject to, and conditioned upon, sufficient funds being available to be drawn by URNA under its senior secured asset-based revolving credit facility at the time URNA is required to deposit the Redemption Price with the Trustee to fund the payment of the Redemption Price and such funds being disbursed when requested by URNA. The Redemption Date may be delayed until such time as the conditions precedent shall be satisfied. In the event that such conditions precedent have not been so satisfied by the Redemption Date, or by the Redemption Date as so delayed, URNA will notify the Trustee, and upon any such notice to the Trustee, the notice of redemption will be of no force or effect for any purpose.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About United Rentals
United Rentals, Inc. is the largest equipment rental company in the world. The company has an integrated network of 1,275 rental locations in North America, 11 in Europe, 28 in Australia and 18 in New Zealand. In North America, the company operates in 49 states and every Canadian province. The company’s approximately 19,900 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers approximately 4,200 classes of equipment for rent with a total original cost of
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. Forward-looking statements involve significant risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These statements are based on current plans, estimates and projections, and, therefore, you should not place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and future financial results of the equipment rental industries, and other legal, regulatory and economic developments. We use words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe harbor provisions of the PSLRA. We give no assurance that it will achieve its expectations and does not assume any responsibility for the accuracy and completeness of the forward- looking statements. You should carefully consider risks and uncertainties that affect our businesses described in the “Risk Factors” section of the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC. All forward-looking statements included in this document are based upon information available to URI on the date hereof; and URI assumes no obligations to update or revise any such forward-looking statements.
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FAQ
What is United Rentals planning regarding its 5.875% Senior Notes?
When will United Rentals redeem the Senior Notes?
What is the redemption price for the Senior Notes?
How will United Rentals finance the redemption of the Senior Notes?
What could delay the redemption of the Senior Notes?
