Equipment-rental company United Rentals Inc., along with its subsidiary, is offering up to $572.5 million in convertible senior unsecured notes, the company said Tuesday.
United Rentals' will offer $150 million in senior notes due 2015, plus offer an additional $22.5 million in notes to underwriters. Its subsidiary United Rentals North America's will offer $400 million in senior notes due 2019.
Net proceeds will be used to redeem a portion of the company's 14 percent senior notes due 2014. It will also use available cash on hand to pay the cost of the convertible note hedge transactions.
BofA Merrill Lynch, Wells Fargo Securities and Morgan Stanley are the joint book-running managers for both offerings. BofA Merrill Lynch is the lead book-running manager for United Rentals' convertible senior notes offering, while Wells Fargo Securities is the lead book-running manager for the company's subsidiary.
Shares of United Rentals fell 89 cents, or 9 percent, to $8.98 in midday trading.