GREENWICH, Conn. — United Rentals in January sold $1.375 billion of notes in two parts, the largest sale in the junk bond market since October, according to a Reuters news report.
The company said it sold $1 billion of senior notes due 2012 yielding 6.50 percent and $375 million of senior subordinated notes due 2014 yielding 7 percent. Proceeds will be used to help refinance a portion of the company's outstanding debt. Banc of America Securities, Credit Suisse First Boston, Citigroup Global Markets and J.P. Morgan managed the sale.
Earlier, United announced its intention to refinance a substantial portion of its outstanding debt over a period of several weeks. The refinancing is being undertaken to take advantage of current market opportunities that should allow the company to reduce its interest expense and extend the maturities of a substantial portion of its debt.
As part of the refinancing, the company said it would replace its existing senior secured credit facility with a new secured credit facility and refinance outstanding senior and subordinated notes and funds available under the new secured credit facility, which it began Friday. The debt the company is refinancing includes $640 million of term loans; all borrowings under the company's revolving credit facility; $860 million principal amount of 10 ¾ percent senior notes due 2008; $300 million principal amount of 9 ¼ senior subordinated notes due 2009; and $250 million principal amount of 9 percent senior subordinated notes due 2009.
United Rentals is No. 1 on the RER 100.
