Filed pursuant to Rule 433

Free Writing Prospectus dated November 10, 2009

Registration Statement No. 333-160884

 

UNITED RENTALS, INC.
Pricing Term Sheet — November 10, 2009
$150,000,000 4.00% Convertible Senior Notes due 2015

 

The following information, filed pursuant to Rule 433, supplements the Preliminary Prospectus Supplement dated November 9, 2009, to the accompanying Prospectus dated November 2, 2009, filed as part of Registration Statement No. 333-160884

 

Issuer:

 

United Rentals, Inc. (the “Issuer”)

 

 

 

Title of Securities:

 

4.00% Convertible Senior Notes due 2015 (the “Notes”)

 

 

 

Face (Principal Amount):

 

$150,000,000

 

 

 

Over-allotment Option:

 

$22,500,000

 

 

 

Gross Proceeds:

 

$150,000,000

 

 

 

Net Proceeds (before expenses):

 

$145,500,000

 

 

 

Maturity:

 

November 15, 2015, unless earlier converted or repurchased

 

 

 

Offer Price:

 

100%, plus accrued interest, if any, from November 17, 2009

 

 

 

Coupon:

 

4.00%

 

 

 

Interest Payment Dates:

 

May 15 and November 15

 

 

 

First Interest Payment Date:

 

May 15, 2010

 

 

 

Reference Price:

 

$8.89, the last reported sale price for the Issuer’s common stock on the NYSE on November 10, 2009

 

 

 

Conversion Premium:

 

Approximately 25.0% over the Reference Price

 

 

 

Initial Conversion Price:

 

Approximately $11.11 per share of common stock, subject to adjustment

 

 

 

Conversion Rate:

 

89.9888 shares of common stock per $1,000 principal amount of Notes, subject to adjustment

 

 

 

Trade Date:

 

November 10, 2009

 

 

 

Settlement Date:

 

November 17, 2009 (T + 4)

 

 

 

CUSIP/ISIN Numbers:

 

911363 AL3 / US911363AL38

 

 

 

Bookrunners:

 

Merrill Lynch, Pierce, Fenner & Smith Incorporated
Morgan Stanley & Co. Incorporated
Wells Fargo Securities, LLC

 

 

 

Co-Managers:

 

Barclays Capital Inc.
Calyon Securities (USA) Inc.
Scotia Capital (USA) Inc.

 

 

 

Purchase of Convertible Note Hedge:

 

In connection with the offering of the Notes, the Issuer entered into convertible note hedge transactions with one or more counterparties (which may include the underwriters or affiliates thereof) (such counterparties or affiliates, the “option counterparties”). The convertible note hedge transactions cover, subject to anti-dilution adjustments

 

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substantially similar to those in the Notes, 13,498,320 shares of the Issuer’s common stock. If the underwriters exercise their overallotment option to purchase additional Notes, the Issuer expects to use cash on hand to enter into additional convertible note hedge transactions with the option counterparties.

 

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Adjustment to Shares Delivered upon Conversion in Connection with a Make-Whole Fundamental Change:

 

The following table sets forth the adjustments to the conversion rate, expressed as a number of additional shares to be received per $1,000 in principal amount of the Notes, in connection with a make-whole fundamental change (as defined in the Preliminary Prospectus Supplement):

 

 

 

Stock Price

 

Effective Date

 

$8.89

 

$10.00

 

$11.00

 

$12.50

 

$15.00

 

$17.50

 

$20.00

 

$25.00

 

$30.00

 

$35.00

 

$40.00

 

$45.00

 

$50.00

 

November 17, 2009

 

22.4971

 

18.7213

 

16.2525

 

13.5795

 

10.6807

 

8.8922

 

7.6100

 

5.6187

 

4.3059

 

3.4900

 

2.8699

 

2.3888

 

2.0051

 

November 15, 2010

 

22.4971

 

17.5976

 

15.0147

 

12.3113

 

9.5154

 

7.8563

 

6.7102

 

5.1652

 

4.1354

 

3.4043

 

2.8573

 

2.1620

 

1.8273

 

November 15, 2011

 

22.4971

 

16.4779

 

13.6849

 

10.8953

 

8.1947

 

6.7254

 

5.5786

 

4.2392

 

3.3705

 

2.7547

 

2.2937

 

1.9351

 

1.6495

 

November 15, 2012

 

22.4971

 

15.2910

 

12.1657

 

9.2199

 

6.6349

 

5.2597

 

4.4474

 

3.3848

 

2.7004

 

2.2146

 

1.8505

 

1.5670

 

1.3406

 

November 15, 2013

 

22.4971

 

13.9757

 

10.3325

 

7.1521

 

4.7544

 

3.7156

 

3.1261

 

2.3880

 

1.9106

 

1.5706

 

1.3156

 

1.1171

 

0.9585

 

November 15, 2014

 

22.4971

 

11.8351

 

7.5021

 

4.2345

 

2.4521

 

1.9244

 

1.6383

 

1.2627

 

1.0138

 

0.8360

 

0.7029

 

0.5990

 

0.5160

 

November 15, 2015

 

22.4971

 

10.0111

 

0.9202

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

 

The exact stock prices and effective dates may not be set forth in the table above, in which case:

 

·                  If the stock price is between two stock prices in the table or the effective date is between two dates in the table, the number of additional shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock prices and the earlier and later effective dates, as applicable, based on a 365-day year.

 

·                  If the stock price is greater than $50.00 per share, subject to adjustment as of any date on which the conversion rate of the notes is otherwise adjusted, no additional shares will be added to the conversion rate.

 

·                  If the stock price is less than $8.89 per share, subject to adjustment as of any date on which the conversion rate of the notes is otherwise adjusted, no additional shares will be added to the conversion rate.

 

Notwithstanding the foregoing, in no event will the conversion rate exceed 112.4859 shares of common stock per $1,000 in principal amount of Notes, subject to adjustment from time to time as set forth in the Preliminary Prospectus Supplement.

 

The Issuer has previously filed a registration statement (including a prospectus and the related preliminary prospectus supplement) on Form S-3 with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates, which registration statement became effective on November 2, 2009.  Before you invest, you should read the preliminary prospectus supplement to the prospectus in that registration statement and the other documents the Issuer has filed with the SEC for more complete information about the Issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov.  Alternatively, a copy of the prospectus supplement relating to this offering may also be obtained by calling BofA Merrill Lynch at 866-500-5408, contacting Morgan Stanley at 180 Varick Street, 2nd Floor, New York, NY 10014, Attn: Prospectus Department, 866-718-1649 or via email at prospectus@morganstanley.com, or contacting Wells Fargo Securities, LLC, 375 Park Avenue, New York, New York 10152, Attention: Equity Syndicate Department, 800-326-5897 or via email at equity.syndicate@wachovia.com.

 

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