New Issue: United Rentals prices $750 million eight-year notes at par to yield 3 7/8%

By Paul A. Harris

Portland, Ore., Oct. 21 – United Rentals (North America), Inc. priced a $750 million split-rated issue of eight-year senior secured second-lien notes (Ba1/BBB-) at par to yield 3 7/8% on Monday, according to a syndicate source.

The yield printed at the tight end of yield talk in the 4% area.

BofA Securities Inc. was the left bookrunner. Joint bookrunners were Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Scotia Capital (USA) Inc., MUFG, Barclays, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.

The Stamford, Conn.-based equipment rental company plans to use the proceeds, together with borrowings from its asset-based loan, to redeem all $1 billion of its 4 5/8% senior secured notes due 2023 at 102.313.

Issuer:	United Rentals (North America), Inc.
Amount:	$750 million
Maturity:	Nov. 15, 2027
Securities:	Senior secured second-lien notes
Left bookrunner:	BofA Securities Inc.
Joint bookrunners:	Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Scotia Capital (USA) Inc., MUFG, Barclays, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC
Co-managers:	SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and PNC Capital Markets LLC
Coupon:	3 7/8%
Price:	Par
Yield:	3 7/8%
Spread:	214 bps
Call protection:	Three years
Trade date:	Oct. 21
Settlement date:	Nov. 4
Ratings:	Moody's: Ba1
	S&P: BBB-
Distribution:	SEC registered
Price talk:	4% area
Marketing:	Quick to market

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