United Rentals whispers $925 million 10.5-year notes at 5%-5¼%; pricing Friday

By Paul A. Harris

Portland, Ore., July 28 – United Rentals, Inc. plans to price $925 million of 10.5-year senior notes in a quick-to-market Friday transaction, according to market sources.

Initial guidance has the public deal coming with a yield of 5% to 5¼%, according to a trader, who added that the bonds are expected to fly off the shelves.

BofA Merrill Lynch is the lead bookrunner. Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, Morgan Stanley & Co. LLC, Scotia Capital and Wells Fargo Securities LLC are the joint bookrunners for the offering.

The issuing entity will be United Rentals (North America), Inc.

The Stamford, Conn.-based equipment rental company plans to use the proceeds, in addition to a $53 million draw on its senior secured asset-based revolving credit facility, to take out its $925 million of outstanding 6 1/8% senior notes due 2023 at a make-whole redemption price that is estimated to be 104.371.

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