United Rentals has given notice of its intention to cause the conversion rights of holders of its outstanding 6½-percent Convertible Subordinated Debentures due Aug. 1, 2028 and the corresponding rights of holders of its subsidiary’s outstanding 6½-percent Convertible Quarterly Income Preferred Securities due Aug. 1, 2028 (CUSIP Nos. 91136H306 and 91136H207) to expire on April 8, the conversion expiration date.
Conversion rights will terminate at 5 p.m. on April 8. The Preferred Securities are convertible at any time prior to 5 p.m. on the conversion expiration date into a portion of the debentures, which will immediately be converted at a conversion rate of 1.2188 shares of common stock for each $50 in aggregate principal amount of debentures.
The conversion price of the Preferred Securities, as of the close of business on March 7, is $41.0224 per share of common stock. The current market price of the common stock, as of the close of business on March 7, is $53.78.
The Bank of New York Mellon, the trustee for the Preferred Securities, is distributing a Notice of Expiration of Conversion Rights to all registered holders of the Preferred Securities. Copies of the notice and additional information relating to the procedure for conversion of the Preferred Securities may be obtained from The Bank of New York Mellon bondholder relations by calling (800) 254-2826.
Greenwich, Conn.-based United Rentals is No. 1 on the RER 100.