United Rentals to raise $471 million

United Rentals is raising net funds of $471.2 million by selling $500 million in senior notes. This is an increase on the $300 million issue previously announced, which was oversubscribed.

United said it will use the funds to remove other senior indebtedness; to pay down its senior secured asset-backed revolving credit facility; and for other general corporate purposes.

The notes will carry an interest rate of 10.875% and are due in 2016. The money is being raised by United Rentals (North America), Inc, with its parent company, United Rentals Inc, guaranteeing the debt.

See the related interview with United Rentals' CEO, Michael Kneeland, (right).