United Rentals prices $2.5 billion of senior notes maturing 2029 to 2036
United Rentals' subsidiary priced three tranches of senior notes totaling $2.5 billion, with expected net proceeds of about $2.476 billion.
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what happened
United Rentals (North America), a subsidiary of United Rentals, Inc., priced three tranches of senior notes totaling $2.5 billion in a registered public offering, according to a press release published by TradingView and Business Wire. The $700 million 5.550% notes mature in 2029, the $800 million 5.750% notes in 2031, and the $1 billion 6.200% notes in 2036.
The deal is the subsidiary's first investment-grade debt issuance. Expected net proceeds are about $2.476 billion. The company plans to repay its senior secured term loan in full and use the rest for general corporate purposes, including reducing borrowings under its asset-based revolver and receivables securitization facility. J.P. Morgan, BofA Securities, Goldman Sachs and Wells Fargo are the joint book-running managers.
why it matters
The offering shows the company can reach the investment-grade debt market and refinance more expensive obligations. For corporate bond investors it signals demand for paper from the largest equipment rental company, and for URI shares it points to a lower cost of debt.
market impact
US corporate debt: $2.5 billion of new bonds add supply; URI shares: refinancing eases debt costs
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prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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