United Rentals accepts 27.16 million shares in oversubscribed tender offer

By Angela McDaniels

Tacoma, Wash., July 23 - United Rentals, Inc. said it accepted for purchase 27.16 million shares, or 31.4%, of its common stock in a modified Dutch auction tender offer that expired on July 16.

The shares will be purchased for $22 each for a total of $597.5 million, according to a company news release.

A total of 71,979,730 shares were tendered into the offer. Of these shares, 37.66% were accepted.

Because of the oversubscription, the company said it will not be purchasing any shares issuable upon the conditional exercise of options or warrants tendered under the offer.

Following the purchase of the accepted shares, United Rentals expects to have 59.3 million shares of common stock outstanding.

It was previously reported that United Rentals would purchase up to 27.16 million shares under the offer at a price not less than $22 or greater than $25 per share.

United Rentals planned to fund the purchase primarily through borrowings under its new asset-based loan facility and with its accounts receivable securitization facility.

UBS Investment Bank and Credit Suisse were the dealer managers for the tender offer. D.F. King & Co., Inc. (800 269-6427 or 212 269-5550) was the information agent, and American Stock Transfer and Trust Co. was the depositary.

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

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