The company expects to use approximately $100 million of the net proceeds from the offering to repay outstanding borrowings under its revolving credit facility. In connection with the offering, the company expects to amend its senior credit facility to, among other things, obtain greater flexibility with respect to certain financial ratios through the end of 2004. Completion of the offering will be conditioned on this amendment being obtained. The company will also reduce the maximum borrowings available under its revolving credit facility from $750 million to $650 million.
The notes expected to be offered have not been, and will not be registered under the Securities Act of 1933 and, accordingly, may not be offered or sold in the United States absent registration under the Securities Act of 1933 or an applicable exemption from the registration requirements. Standard & Poor’s Rating Services assigned its ‘BB’ rating to United Rentals offering of $200 million additional 10.75 percent senior unsecured notes due 2008 under Rule 144A with registration rights. At the same time Standard & Poor’s affirmed its ratings, including its ‘BB’ corporate credit rating, on URI and related entities. The outlook is stable.
Greenwich, Conn.-based United Rentals is No. 1 on the RER 100.
