New Issue: United Rentals sells $1.1 billion 10-year notes at par to yield 6 1/8%

By Paul A. Harris

Portland, Ore., March 7 – United Rentals (North America), Inc. priced a $1.1 billion issue of 10-year senior notes (Ba2/BB+) at par to yield 6 1/8% in a Thursday drive-by, according to market sources.

The yield printed in the middle of yield talk in the 6 1/8% area and in line with initial guidance in the low-6% area.

Bookrunners were Morgan Stanley & Co. LLC, BofA Securities Inc., Wells Fargo Securities LLC, Scotia Capital (USA) Inc., MUFG Securities Americas Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and Truist Securities Inc.

The Stamford, Conn.-based equipment rental company plans to use the proceeds to fund its acquisition of Yak, a Hattiesburg, Miss.-based provider of matting ground protection and temporary roadway solutions, for approximately $1.1 billion in cash.

Issuer:	United Rentals (North America), Inc.
Amount:	$1.1 billion
Issue:	Senior notes
Maturity:	March 15, 2034
Bookrunners:	Morgan Stanley & Co. LLC, BofA Securities Inc., Wells Fargo Securities LLC, Scotia Capital (USA) Inc., MUFG Securities Americas Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and Truist Securities Inc.
Co-managers:	BMO Capital Markets Corp., J.P. Morgan Securities LLC, Regions Securities LLC and SMBC Nikko Securities America Inc.
Coupon:	6 1/8%
Price:	Par
Yield:	6 1/8%
Spread:	201 bps
First call:	March 15, 2029 at 103.063
Trade date:	March 7
Settlement date:	March 11
Ratings:	Moody’s: Ba2
	S&P: BB+
Distribution:	Rule 144A for life and Regulation S
Marketing:	Drive-by

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