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# United Rentals Subsidiary Sells $2.5 Billion Of Notes To Repay $975 Million Term Loan
- URL: https://www.bullished.co/united-rentals-subsidiary-sells-2-5-billion-of-notes-to-repay-975-million-term-loan-005e46c2/
- Published: 2026-10-29T20:42:25.000Z
- Updated: 2026-10-29T20:42:25.000Z
- Description: The three-series offering, guaranteed by the parent, follows investment-grade ratings on the unit's existing notes this month.
- Author: Matteo Parrino
- Tags: Deals, URI, Industry: Industrials

[United Rentals](https://www.bullished.co/tag/uri/)' operating subsidiary closed a [$2.5 billion senior notes offering](https://www.sec.gov/Archives/edgar/data/0001067701/000110465926120211/tm2628016d6%5F8k.htm?ref=bullished.co) on Thursday and used part of the cash to repay its $975 million term loan in full, according to an [8-K](https://www.bullished.co/learn/8-k-items-explained/). The sale came weeks after both S&P Global Ratings and Moody's Investors Service rated the unit's existing notes investment grade.

## Three series, 5.550% to 6.200%

United Rentals (North America) sold [$700 million](https://seekingalpha.com/news/4657674-united-rentals-subsidiary-prices-25b-debt-deal?ref=bullished.co) of 5.550% notes due 2029, $800 million of 5.750% notes due 2031 and $1 billion of 6.200% notes due 2036\. Each series matures on October 15 of its year, and interest is paid every April 15 and October 15, starting April 15, 2027.

The subsidiary received [about $2.476 billion](https://markets.ft.com/data/announce/detail?dockey=600-202610261835BIZWIRE%5FUSPRX%5F%5F%5F%5F20261026%5FBW255220-1&ref=bullished.co) in net proceeds after underwriting discounts, commissions and estimated fees and expenses. It repaid the $975 million of term loans in full, and the rest went to general corporate purposes, including paying down its credit agreement borrowings.

The notes are unsecured and guaranteed by the parent, United Rentals. The subsidiary can redeem each series early at a make-whole price (a premium that compensates holders for lost interest) until par call dates of September 15, 2029, September 15, 2031 and July 15, 2036\. If a change of control triggers a rating event, it must offer to repurchase the notes at 101% of principal.

## Investment grade unlocks the collateral

S&P assigned investment-grade ratings to each series of the subsidiary's existing notes on October 9, and Moody's did the same on October 23\. Under the indentures, that let the subsidiary release the liens on collateral behind its secured existing notes and the subsidiary guarantees on all of them. Both releases took effect on October 23.

The existing notes are now senior unsecured obligations guaranteed only by the parent. A related [amendment](https://www.sec.gov/Archives/edgar/data/0001067701/000110465926120211/tm2628016d6%5F8k.htm?ref=bullished.co) to the credit agreement requires a domestic subsidiary to guarantee it only if the subsidiary incurs or guarantees capital markets debt or term loans above $300 million. It also raised the European swingline sub-limit, for short-term loans, from $15 million to $40 million.

With the term loan repaid on Thursday, the subsidiary guarantors under the credit agreement were released and their asset liens lifted. The credit agreement's obligations remain senior secured.

## A rental fleet of 1.1 million units

United Rentals rents equipment to construction and industrial customers. As of December 31, 2025, it had 1,768 rental locations, about 1,095,000 equipment units and 28,500 employees. Equipment rental made up 86% of its $16,099 million in 2025 revenue.

J.P. Morgan, BofA Securities and Goldman Sachs led the underwriting group.

The first interest payment on all three series is due April 15, 2027.

Learn

- [Item 1.01: entry into a material agreement →](https://www.bullished.co/learn/8-k-items-explained/#item-101-entry-into-a-material-agreement)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — UNITED RENTALS, INC. (URI)](https://www.sec.gov/Archives/edgar/data/0001067701/000110465926120211/tm2628016d6%5F8k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit tm2628016d6\_ex1-1.htm — UNITED RENTALS, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001067701/000110465926120211/tm2628016d6%5Fex1-1.htm?ref=bullished.co) — SEC EDGAR
- [United Rentals subsidiary prices $2.5B debt deal (URI:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4657674-united-rentals-subsidiary-prices-25b-debt-deal?ref=bullished.co) — seekingalpha.com
- [United Rentals Announces Pricing of Offering of $700,000,000 of 5.550% Senior Notes due 2029; $800,000,000 of 5.750% Senior Notes due 2031; $1,000,000,000 of 6.200% Senior Notes due 2036 – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610261835BIZWIRE%5FUSPRX%5F%5F%5F%5F20261026%5FBW255220-1&ref=bullished.co) — Financial Times

### More on United Rentals

- [United Rentals CEO Says Running Fleet This Hot 'Isn't The Most Prudent Thing' — And May Ease Off In 2027](https://www.bullished.co/united-rentals-ceo-says-running-fleet-this-hot-isnt-the-most-prudent-thing-and-may-ease-8e141304/)
- [United Rentals Now Says Its Restructuring Will Cost 'Not Exceed $75' Million, After Hitting $65 Million](https://www.bullished.co/united-rentals-now-says-its-restructuring-will-cost-not-exceed-75-million-after-hitting-65-7f24a8c1/)
- [United Rentals Raises 2026 Revenue Forecast To $18.0 Billion-$18.2 Billion After Record Third Quarter](https://www.bullished.co/united-rentals-raises-2026-revenue-forecast-to-18-0-billion-18-2-billion-after-record-c2e49019/)

[All United Rentals (URI) coverage →](https://www.bullished.co/tag/uri/)