By Ronda Fears
Nashville, Oct. 28 - United Rentals Inc. sold $125 million of 20-year convertible notes at par to yield 1.875% with a 49% initial conversion premium, via bookrunner Goldman Sachs & Co.
The overnight Rule 144A deal, however, was reoffered by the underwriter at 98, according to market sources.
The Greenwich, Conn. company said proceeds would be used to buy out its existing equipment leases and for general corporate purposes. The company also announced Tuesday that it planned to sell $450 million of straight senior notes with those proceeds going to redeem the remaining $205 million of its 8.8% senior subordinated notes due 2008 and $200 million 9.5% senior subordinated notes due 2008.
Terms of the deal are:
| Issuer: | United Rentals Inc.
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| Issue: | Convertible senior subordinated notes
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| Lead manager: | Goldman Sachs
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| Amount: | $125 million
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| Greenshoe: | $18.75 million
|
| Maturity: | Oct. 30, 2023
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| Coupon: | 1.875%
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| Price: | Par
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| Yield: | 1.875%
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| Conversion premium: | 49%
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| Conversion price: | $25.67
|
| Conversion ratio: | 38.952
|
| Call: | Non-callable for 7 years
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| Ratings: | S&P: B+
|
| Settlement | Oct. 31
|
| Pricing date: | Oct. 27, after the close
|
| Distribution: | Rule 144A
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