United Rentals prepays $400 million of term loan debt

By Sara Rosenberg

New York, Sept. 28 - United Rentals Inc. prepaid $400 million of its term loan debt on Thursday, according to a company news release.

Funds for the repayment are coming from $200 million of available cash and $200 million drawn on the company's accounts receivable securitization facility.

"We are taking advantage of our strong free cash flow to strengthen our balance sheet and reduce interest expense. In addition to the $400 million prepayment of our term debt announced today, the company bought out $44 million of equipment under operating leases in the second quarter and announced the redemption of $63 million of the 6.5% convertible quarterly income preferred securities," said Martin E. Welch, executive vice president and chief financial officer, in the release.

United Rentals is a Greenwich, Conn.-based equipment rental company.

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