14.09.2005

United reaches agreement with bondholders

United Rentals Inc, the worlds largest aerial platform rental operator with a fleet of around 65,000 units, has announced that it has reached an agreement in principle with ad hoc committee representing holders of the a selection of Senior notes that mature between 2012 and 2023.

The company believes that the ad hoc committee represents approximately 60 financial institutions that collectively hold more than $1.4 billion of the bonds in question and thus over 50 percent. The agreement extends the time the company has to file its final accounts with the SEC until March 31 2006.

The timely filing of accounts is, in effect, a covenant of these
bonds, allowing the lenders to call in the loans if not met.

In order to reach agreement United will pay the bondholders a “Consent fee” of $16.25 for each $1,000 invested in the 2012-2014 senior notes. The other bonds involved will receive similar levels of compensation.

The company will also provide “certain items of unaudited interim operating financial information on a monthly and quarterly basis during the term of the waiver, including revenues, capital expenditures, cash flow from operations, liquidity, and outstanding debt”.

Approval of this agreement will require the formal consent from holders of a majority of the principal amount of each bond issue.
Wayland Hicks, chief executive officer said, "We are pleased to have reached this understanding with representatives of the various bondholder groups. We continue to focus on resolving expeditiously issues associated with the SEC inquiry and driving strong operating performance."

The company is extending the expiration date for the consents to be agreed to until 5:00 p.m., New York City time, on Monday, September 19, 2005.

United also announced that it has appointed Martin E. Welch as interim chief financial officer, effective immediately. This follows the dismissal of President and Chief Financial Officer, John Milne last month