GREENWICH, Conn. — United Rentals last month said that the U.S. antitrust waiting period related to its acquisition of RSC Holdings has expired without objections. The expiration of the waiting period satisfies one of the requirements for the deal to close.
Subsequently, United Rentals received a “no-action letter” from the Canadian Competition Bureau indicating that the Bureau does not intend to oppose completion of the acquisition. The receipt of the “no-action letter” satisfies one of the conditions to the closing of the proposed transaction. Completion of the proposed transaction remains subject to certain other closing conditions, including, among others, approvals of the stockholders of United Rentals and RSC Holdings.
In related news, United Rentals announced that its subsidiary, UR Financing Escrow Corp., is offering $1.55 billion aggregate principal amount of senior unsecured notes and $650 million aggregate principal amount of senior secured notes, in each case to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended and outside the United States in accordance with Regulation S under the Securities Act.
The gross proceeds from the notes offerings will be placed into escrow pending the consummation of the merger transaction with RSC Holdings. Following release of the proceeds of the offerings from escrow, the company intends to use the net proceeds from the offerings to pay the cash consideration to be paid in the merger transaction, to refinance RSC's existing senior secured indebtedness and to pay related fees and expenses.
United Rentals is No. 1 on the RER 100. Scottsdale, Ariz.-based RSC Equipment Rental is No. 2.