United Rentals Announces Redemption at Par of the Remaining 6½% Senior Notes
Greenwich, CT - Jan 12, 2010
United Rentals, Inc. (NYSE: URI) today announced that its principal subsidiary, United Rentals (North America), Inc., will redeem its remaining $435.2 million aggregate principal amount of outstanding 6 ½% Senior Notes due 2012. The 6 ½% Senior Notes will be redeemed on February 16, 2010 at par, plus accrued interest. The redemption of the 6 ½% Senior Notes follows on the company’s recent redemption of $270.6 million aggregate principal amount of its 14% Senior Notes due 2014 and the upsizing of its asset-based revolving credit facility in December 2009.
William Plummer, Chief Financial Officer, said, “The redemption of the 6 ½% Senior Notes substantially improves our debt maturity profile. The company’s next significant debt maturity comes due in 2013. This move highlights our company’s commitment to proactively refine our capital structure to reduce financial risk and supports our focus on long-term profitable growth.”
About United Rentals
United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 568 rental locations in 48 states, 10 Canadian provinces and Mexico. The company’s approximately 8,000 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers for rent approximately 3,000 classes of equipment with a total original cost of $3.8 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.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “seek,” “on-track,” “plan,” “project,” “forecast,” “intend” or “anticipate,” or the negative thereof or comparable terminology, or by discussions of strategy or outlook. You are cautioned that our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control, and, consequently, our actual results may differ materially from those projected. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) on-going decreases in North American construction and industrial activities, which have significantly affected revenues and, because many of our costs are fixed, our profitability, and which may further reduce demand and prices for our products and services; (2) our highly leveraged capital structure, which requires us to use a substantial portion of our cash flow for debt service and can constrain our flexibility in responding to unanticipated or adverse business conditions; (3) noncompliance with financial or other covenants in our debt agreements, which could result in our lenders terminating our credit facilities and requiring us to repay outstanding borrowings; (4) inability to access the capital that our businesses or growth plans may require; and (5) rates we can charge and time utilization we can achieve being less than anticipated. For a more complete description of these and other possible uncertainties, please refer to our Annual Report on Form 10-K for the year ended December 31, 2008, as well as to our subsequent filings with the SEC. Our forward-looking statements contained herein speak only as of the date hereof, and we make no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations.
Cell: (917) 847-4507