07.12.2009

United to redeem 14% notes

United Rentals has announced its intention to redeem the remaining $271 million principal outstanding on its 14% HoldCo Notes that mature in 2014.

The 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, in order to increase its financial flexibility and liquidity.

William Plummer, chief financial officer 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.”

“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.”