United Rentals Completes US$2.9B Refinancing

United Rentals, Inc. completed a US$2.9 billion refinancing that included the issuance of US$1 billion of 6 1/2 per cent senior notes due in 2012, and US$375 million of 7 per cent senior subordinated notes due in 2014. In addition, United Rentals obtained new senior secured credit facilities in an aggregate amount of US$1.55 billion. The borrowers under the new facilities include United Rentals (North America), Inc. and United Rentals of Canada, Inc. The credit facilities include a US$750 million term loan, a US$650 million revolving credit facility, and a US$150 million institutional letter of credit facility. In connection with the refinancing, United Rentals repaid US$691 million of borrowings outstanding under its previous credit facility, repurchased US$845 million principal amount of its 10 3/4 per cent senior notes due in 2008, called for redemption US$300 million principal amount of its 9 1/4 per cent senior subordinated notes due in 2009, and will call for redemption US$250 million principal amount of its 9 per cent senior subordinated notes due in 2009. The credit facilities closed on February 13, 2004.

With respect to the new senior secured credit facilities, United Rentals was represented in-house by Matt Womble, vice-president, legal; in Canada by Macleod Dixon LLP, with a team that included Frank Herbert and Mark Cooper (banking), Byron Loeppky and Jeff Nichols (corporate) and Ed Heakes (tax); and in the US by Weil, Gotshal & Manges LLP in New York, with a team that included Warren Buhle, Malcolm Landau, Lester Szeto and Theodore Sica.

The lenders were represented in Canada by Stikeman Elliott LLP, with a team led by Lewis Smith, and included Kelly Niebergall, Nir Katzour and Stee Asbjornsen in Toronto and Sterling Dietze in Montreal.

JPMorgan Chase Bank, administrative agent under the new credit facilities, was represented in the US by Cravath, Swaine & Moore LLP in New York, with a team that included James Vardell, III, Michael Silverberg and William Zimmern for the bank financing, and Kris Heinzelman, George Stephanakis, Joseph Martin and Nicholas Weeks for the notes offering. Bank of America, NA, US collateral agent under the new credit facilities, was represented by Mayer, Brown, Rowe & Maw LLP in Chicago, with a team that included Robert Baptista, Jr, Todd Bundrant, Massimo Capretta and Zachary Barnett.

Lawyer(s)

Kris F. Heinzelman Mark D. Cooper Byron W. Loeppky Warren T. Buhle Theodore Sica Kelly Niebergall Zachary K. Barnett Lewis T. Smith James Vardell, III William Huntley Zimmern John Baptista, Jr. Malcolm Landau Frank H. Herbert Sterling H. Dietze Massimo Capretta Edward A. Heakes George A. Stephanakis

Firm(s)

Weil, Gotshal & Manges LLP Stikeman Elliott LLP Cravath, Swaine & Moore LLP Mayer Brown LLP