United Rentals plans draw on ABL facility for General Finance purchase

Chicago, April 15 – United Rentals, Inc. announced that it plans to finance the purchase of General Finance Corp. with cash on hand and with borrowings from an existing ABL facility, according to a press release.

The purchase has an enterprise value of approximately $996 million, including the assumption of $400 million of debt.

The company expects to maintain an as-reported leverage ratio of less than 2.5x net debt to EBITDA at closing, and a pro forma leverage ratio of less than 2.4x at closing.

Sullivan & Cromwell LLP acted as United Rentals’ legal advisor in the transaction, and Morrison and Foerster LLP acted as General Finance’s legal advisor

United Rentals is an equipment rental company based in Stamford, Conn. General Finance is a specialty rental services company offering portable storage, modular space and liquid containment solutions based in Pasadena, Calif.

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