United Rentals Brings $2.2B to HY Queue
The company is selling both secured and unsecured notes to take out a bridge loans backing its $4.2B acquisition
February 21, 2012
United Rentals is selling $2.2 billion on the junk bond market to help finance its acquisition of RSC Holdings, the Greenwich, Conn.-based company said.
The equipment rental company is on the market with $1.55 billion in senior notes due 2020 and $650 million in senior secured notes due 2018. Both tranches will take out bridge facilities put in place in December to back the company’s $4.2 billion deak with RSC. The company may also be selling a tranche of senior notes due 2022, according to KDP Investment Advisors.
Lead bookrunner Morgan Stanley, along with Bank of America Merrill Lynch and Wells Fargo committed $2.2 billion to the deal through a $650 million in senior secured bridge facility and a $1.55 billion senior unsecured bridge facility. The banks have also agreed to refinance the company’s existing $1.8 billion revolver in full. The banks are launching a roadshow today and the bonds are expected to price by Friday, Feb. 24.
United Rentals agreed in December to purchase RSC for about $1.9 billion in cash and stock. The deal’s $4.2 billion value includes United’s assumption of RSC debt.
United Rentals last tapped the junk bond market in October 2010, pricing $750 million (upsized from $500 million) in 8.375% senior notes due 2020.
Matthew Sheahan reports for Leveraged Finance News
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