United Rentals Inc. subsidiary United Rentals (North America) Inc. announced a public offering of $750 million in 3.875% senior notes due 2027.
The company will use net proceeds, totaling about $741 million, along with borrowings of $282 million under a revolving credit facility, to redeem $1.0 billion in 4.625% notes due 2023. The redemption will be undertaken at a price of 102.313% of the principal amount, plus accrued and unpaid interest.
The $750 million note offering is expected to close Nov. 4.
Pending the redemption, the United Rentals unit will use the public offering's proceeds to reduce borrowings under its revolving credit facility. The unit then expects to borrow under the same facility to fund the redemption.
BofA Securities, Morgan Stanley, Wells Fargo Securities, Citigroup, Scotiabank, MUFG, Barclays, Deutsche Bank Securities and J.P. Morgan are the joint book-running managers for the note offering. BofA Securities is the lead book-running manager for the 3.875% note issuance.
The redemption of the 4.625% notes is scheduled for Nov. 20, subject to the closing of the 3.875% note offering. Wells Fargo Bank NA is the trustee of the 4.625% notes.