Greenwich, CT -
United Rentals, Inc. (NYSE: URI) today announced its intention to redeem its remaining $271 million aggregate principal amount of outstanding 14% HoldCo Notes due 2014. The 14% HoldCo Notes will be redeemed on December 21, 2009 at par. The company also announced the upsizing of its $1.285 billion asset-based revolving facility to $1.360 billion, further increasing its financial flexibility and liquidity.
William Plummer, Chief Financial Officer of United Rentals said, “We are continually refining our capital structure to support our focus on long-term profitable growth, and the redemption of the 14% HoldCo Notes both reduces our interest expense and improves our debt maturity profile.”
Mr. Plummer continued, “The $75 million increase in availability under the ABL, in addition to our recent bond issuances, further demonstrates our ability to access capital even at the lowest points in our cycle. The financial actions we have taken over the past year support our core rental strategy and will position United Rentals to invest the necessary capital in our business when the economy recovers.”
About United Rentals
United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 580 rental locations in 48 states, 10 Canadian provinces and Mexico. The company’s approximately 8,200 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. 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.
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