United Rentals expected to bring $1.1 billion senior notes backing BlueLine acquisition

By Paul A. Harris

Portland, Ore., Oct. 17 – United Rentals, Inc. is expected to bring $1.1 billion of senior notes (Ba3) in a deal that could launch before the end of the Oct. 15 week, a trader said on Wednesday.

The Stamford, Conn.-based equipment rental company, which is seeking to raise cash to fund its acquisition of heavy equipment rental firm BlueLine Rentals, from Platinum Equity, came out with quarterly earnings on Wednesday.

Earnings of $4.74 per share beat analysts' estimates of $4.54 per share.

Funding for the BlueLine Rentals acquisition also includes a $1 billion seven-year covenant light term loan (Baa3/BBB-) that launched in late September with an Oct. 5 commitment date.

BofA Merrill Lynch, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Bank of Nova Scotia and MUFG were the lead banks on the loan.

A bookrunner for the bonds has not yet stepped forward, the trader said late Wednesday afternoon.

United Rentals is acquiring BlueLine Rentals for about $2.1 billion in cash in a transaction that is expected in the fourth quarter of 2018.

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