United Rentals, Inc.
), the provider of rental and leasing services, recently
announced that its subsidiary, United Rentals (North America),
Inc. (URNA), will redeem its Senior Notes due 2019 with a coupon
rate of 10.25%. The principal amount of the notes aggregate $200
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The company notified the holders that the redemption will take
place on Jan 21, 2014. The redemption price of the Notes will
equal 112.916% of the principal amount of the Notes plus accrued
and unpaid interest up to the date of the redemption.
Wells Fargo Bank, National Association; a subsidiary of
Wells Fargo & Company
); worked as the trustee for the Notes. URNA expects to use
borrowings of around $226 million under its asset-based revolving
credit facility to redeem the principal amount of the Notes. The
amount under this facility rose by $400 million on Dec 19, 2013,
resulting in an available combined amount of $2,300 million.
United Rentals reported third-quarter 2013 adjusted earnings of
$1.63 per share, up 20.7% from the prior-year quarter. Adjusted
earnings before interest, taxes, depreciation and amortization
(EBITDA) in the quarter improved 13% year over year to $642
Time utilization for United Rentals increased 100 basis points
year over year to 70.8%. The company also realized cost synergies
of $64 million in the quarter from the RSC integration.
United Rentals reiterated its adjusted EBITDA guidance for
full-year 2013 in the range of $2.25 billion-$2.35 billion. The
company also reaffirmed its outlook for time utilization of
around 68.0%. In addition, the projected cost synergies on a
run-rate basis have been retained in the band of $230
Greenwich, CT-based United Rentals is the largest equipment
rental company in the world, with an integrated network of 822
rentals. The company offers about 3,200 classes of equipment with
a total original cost of $7.96 billion, for rent.
United Rentals currently has a Zacks Rank #2 (Buy). Other
favorably-ranked stocks in the same industry include
CaesarStone Sdot-Yam Ltd.
James Hardie Industries plc
) with a Zacks Rank #1 (Strong Buy).