United Rentals (North America), Inc. Closes $1.5 Billion Registered Public Offering

September 22, 2017

S&C client United Rentals (North America), Inc. (URNA), a wholly owned subsidiary of United Rentals, Inc. (URI), closed a registered public offering of $750 million of its 4.625% senior notes due 2025 and $750 million of its 4.875% senior notes due 2028. The senior notes are guaranteed on a senior unsecured basis by URI and certain of URNA's domestic subsidiaries. The proceeds from the offering will be used to finance a portion of the $1.3 billion purchase price for URNA's acquisition of Neff Corporation.
Promptly following the closing of the Neff Acquisition, URI intends to conduct a registered exchange offer for the 4.875% senior notes due 2028 to exchange them for 4.875% senior notes due 2028 that are part of a previously issued series, making the new notes issued in the exchange offer fungible with the previously issued notes. Through this novel feature of the offering, URI was able to obtain favorable pricing for the 4.875% senior notes due 2028.
The notes were sold under a shelf registration statement filed with the SEC in 2015.
United Rentals is the largest equipment rental company in the world, with an integrated network of 960 rental locations in the United States and Canada offering approximately 3,300 classes of rental equipment to customers that include construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities.
The S&C team representing URI was led by Neal McKnight and Robert Downes, along with John Anselmi, Brian Farber, Joyce Kwok and Carl Lundeholm. Ronald Creamer and Jeffrey Hochberg advised on tax matters.