United Rentals, Inc. (URI) announced that its subsidiary United Rentals (North America), Inc. will issue $1.5 billion of senior notes due 2033. The notes will be sold in a private placement and are guaranteed on a senior unsecured basis by URI and certain domestic subsidiaries, providing a robust credit backing for investors.
The net proceeds are expected to be $1.486 billion after fees and expenses. Management plans to use the funds to redeem $500 million of existing 5.5% senior notes due 2027, reduce borrowings under the company’s revolving credit facility, and support strategic investments and fleet expansion. A portion of the proceeds will also be allocated to shareholder returns, consistent with URI’s disciplined capital allocation strategy.
This issuance fits within URI’s broader capital structure strategy. The company’s net leverage ratio was 1.86x as of September 30 2025, comfortably within its target range of 1.5x–2.5x. The current ratio stood at 0.9, indicating a modest liquidity cushion that the new debt will help strengthen. The offering also complements URI’s active $2 billion share‑buyback program and a previously announced $1.5 billion repurchase plan, underscoring a commitment to returning value to shareholders while maintaining financial flexibility.
The market has indicated strong demand for the notes, with the offering expected to be fully subscribed. The transaction reflects investor confidence in URI’s ability to manage its debt profile and fund growth initiatives without compromising its balance‑sheet strength.
United Rentals remains the world’s largest equipment‑rental company, operating a fleet with an original cost of approximately $22.82 billion and a global network of locations. The new debt will support continued expansion of this fleet and the company’s strategic initiatives across North America, Europe, Australia, and New Zealand.
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