United Rentals to redeem 5˝% senior notes due 2025 after July 15

Chicago, Feb. 10 – United Rentals (North America), Inc. announced a plan to redeem all $800 million 5˝% senior notes due 2025 on or after July 15, according to a 424B2 filing with the Securities and Exchange Commission on Monday.

The company will redeem the notes at 102.75 plus accrued interest up to but excluding the redemption date.

Funding for the redemption will come from a $750 million offering of new notes and borrowings of approximately $81 million under the company’s asset-backed loan facility.

Prior to the redemption of the 5˝% senior notes, the company will use the new offering to reduce borrowings under the loan.

Then, the company plans to reborrow under the loan to fund the redemption.

As of Dec. 31, 2019, the company has $1.6 billion outstanding under the asset-backed loan facility. The loan matures on Feb. 15, 2024.

United Rentals (North America) is a subsidiary of United Rentals, Inc., a Stamford, Conn.-based equipment rental company.

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