S&P rates United Rentals secured notes BBB-

S&P said it assigned its BBB- issue-level rating and 1 recovery rating to United Rentals (North America) Inc.'s (URNA) proposed $750 million senior secured second-lien notes due 2027. The 1 recovery rating indicates an expectation for very high recovery (90%-100%; rounded estimate: 95%) in the event of a payment default.

URNA is a subsidiary of United Rentals Inc. (URI). URI, as well as URNA's current and future domestic subsidiaries (subject to limited exceptions), guarantee the notes.

The company plans to use the proceeds from this issuance, along with borrowings under its asset-based lending facility, to redeem its $1 billion 4.625% senior secured second-lien notes due 2023.

“The transaction is leverage neutral and we expect it to close in the fourth quarter of 2019,” S&P said in a news release.

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