United Rentals begins Dutch auction tender offer for up to 27.16 million shares

By Lisa Kerner

Charlotte, N.C., June 17 - United Rentals, Inc. began its modified Dutch auction tender offer to purchase up to 27.16 million shares of its common stock at a price not less than $22.00 or greater than $25.00 per share.

The tender offer ends at 5 p.m. ET on July 16, according to a United Rentals news release.

United Rentals said the number of shares to be repurchased represents approximately 31% of the total number of shares of common stock outstanding.

According to the release, the low and high ends of the price range represent a 12.8% and 28.2% premium, respectively, to United Rentals' closing price of $19.50 on June 9.

The total purchase price for the common stock would be $679 million if the maximum number of shares is purchased at the high end of the price range, United Rentals noted.

United Rentals will fund the share purchase primarily through borrowings under its new asset-based loan facility and the company's accounts receivable securitization facility.

UBS Investment Bank and Credit Suisse are the dealer managers for the tender offer. D.F. King & Co., Inc. is the information agent, and American Stock Transfer and Trust Co. is the depositary.

United Rentals is a Greenwich, Conn., equipment rental company with a network of 690 rental locations in 48 states, 10 Canadian provinces and Mexico.

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