United Rentals Announces $400 Million Reduction in Term Loan

Greenwich, CT -


United Rentals, Inc. (NYSE: URI) announced that the company is prepaying today $400 million of its outstanding term loan. The company is using $200 million of available cash and $200 million drawn on its accounts receivable securitization facility to fund the $400 million principal repayment. Under the terms of the loan agreement, substantial repayments of the term loan are not due until 2010.

Martin E. Welch, executive vice president and chief financial officer for United Rentals, said, "We are taking advantage of our strong free cash flow to strengthen our balance sheet and reduce interest expense. In addition to the $400 million prepayment of our term debt announced today, the company bought out $44 million of equipment under operating leases in the second quarter and announced the redemption of $63 million of the 6½% Convertible Quarterly Income Preferred Securities."

The company's total debt (excluding subordinated convertible debentures) was $2,894 million at June 30, 2006, including $733 million outstanding under the term loan. Amounts repaid under the term loan may not be reborrowed.

About United Rentals

United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of more than 760 rental locations in 48 states, 10 Canadian provinces and Mexico. The company's 14,000 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers for rent over 20,000 classes of rental equipment with a total original cost of $4.2 billion. United Rentals is a member of the Standard & Poor's MidCap 400 Index and the Russell 2000 Index® and is headquartered in Greenwich, Conn. Additional information about United Rentals is available at www.unitedrentals.com.



Chuck Wessendorf
VP, Investor Relations and Corporate Communications
United Rentals, Inc.
(203) 618-7318 
[email protected]