New Issue: United Rentals prices $750 million notes due January 2030 at par to yield 5¼%

By Paul A. Harris

Portland, Ore., April 26 – United Rentals (North America), Inc. priced a $750 million issue of senior notes due Jan. 15, 2030 (Ba3/BB-) at par to yield 5¼% in a quick-to-market Friday trade, according to a syndicate source.

The yield printed at the tight end of yield talk in the 5 3/8% area.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Scotia Capital, MUFG, Barclays, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the joint bookrunners.

The Stamford, Conn.-based equipment rental company plans to use the proceeds to refinance its 5¾% senior notes due 2024 and to repay debt under its ABL facility.

Issuer:	United Rentals (North America), Inc.
Amount:	$750 million
Maturity:	Jan. 15, 2030
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Scotia Capital, MUFG, Barclays, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC
Co-managers:	SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, BMO Capital Markets Corp. and PNC Capital Markets LLC
Coupon:	5¼%
Price:	Par
Yield:	5¼%
Spread:	275 bps
First call:	Make-whole call at Treasuries plus 50 bps until Jan. 15, 2025 then callable at 102.625
Equity clawback:	40% at 105.25 until Jan. 15, 2023
Trade date:	April 26
Settlement date:	May 10
Ratings:	Moody's: Ba3
	S&P: BB-
Distribution:	SEC registered
Price talk:	5 3/8% area
Marketing:	Quick to market

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