United Rentals gets required consents for notes, convertibles, QUIPs

By Jennifer Chiou

New York, Sept. 20 - United Rentals, Inc. said it obtained the required consents to amend the indentures of its 6½% senior notes due 2012, 7¾% senior subordinated notes due 2013, 7% senior subordinated notes due 2014, 1.875% convertible senior subordinated notes due 2023 and 6.5% convertible Quarterly Income Preferred Securities (QUIPs).

The consent solicitation ended at 5 p.m. ET on Sept. 19.

On Sept. 12, the Greenwich, Conn., company reached an agreement with the ad hoc committees representing the majority of its notes to improve the terms of the consent solicitations for the notes and QUIPs.

At the same time, the company had again extended its consent solicitations to amend the indentures governing its securities to allow additional time to make filings with the Securities and Exchange Commission from 5 p.m. ET on Sept. 9.

As announced on Aug. 22, United Rentals solicited consents because it delayed filing its 10-K for 2004 and 10-Qs for the first two quarters of 2005.

The amendments allow the company until March 31, 2006 to file its reports and waive related past violations.

Under the amended terms, for the 6½%, 7¾% and 7% notes, United Rentals will pay a consent fee of $16.25 per $1,000 principal amount of notes.

For the QUIPs, the company will pay a consent fee of $0.8125 per $50.00 of liquidation preference.

For the 1 7/8% convertibles, the conversion rate was increased to 44.9438 shares from 38.9520 shares of United Rentals' stock for each $1,000 principal amount of notes.

Previously, United Rentals said it would pay a consent fee of $2.50 for each $1,000 principal amount of notes - including the convertibles - and $0.125 for each $50 liquidation preference of QUIPs.

"We are pleased to have obtained amendments that are reasonable for all parties involved. We remain focused on addressing outstanding issues with the SEC inquiry as we work toward finalizing our results for 2004 and subsequent periods," chief executive officer Wayland Hicks said in a news release.

As already reported, the company also said it will provide unaudited interim operating financial information on a monthly and quarterly basis during the term of the waiver, including revenues, capital expenditures, cash flow from operations, liquidity and outstanding debt.

Credit Suisse First Boston is solicitation agent and MacKenzie Partners (800 322-2885 or call collect 212 929-5500) is information agent.

United Rentals is the largest equipment rental company in the world.

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