EFTA01378344.pdf

INTERNAL USE ONLY DO NOT DISTRIBUTE IN PART OR IN WHOLE Corporate Credit > U.S. High Yield United Rentals Inc. (URI) Updated: September 8, 2015 Trade Idea: o Buy United Rentals 5.75% senior unsecured notes due 2024 Investment Rationale: o Largest North American construction and industrial equipment rental company. Solid 50% EBITDA margin business with a current healthy 66% overall equipment utilization rate. o URI has provided full year 2015 guidance for free cash flow of $725MM to $750MM before share repurchases. o Moderate leverage profile at 2.9x total debt/EBITDA, with management's publicly articulated target leverage ratio of 2.5x — 3.5x, and publicly traded equipment rental company comparables trading at 5.0x - 6.0x EV/EBITDA multiples. o Significant hard asset coverage with a total fleet original equipment cost of $8.448n, at a 43-month average fleet age, relative to $8.4Bn in total company debt. o Publicly traded company with a $6.4Bn equity market capitalization. 57% Total Debt / Enterprise Value The URI 5.75% senior unsecured notes due 2024, at the current offer price of $100.0, provide a 5.75% YTW, 358 bps OAS, and a 5.75% current yield for a solid BB- rated company. Recommendation(s): Rating: Cash Trade Horton I dant Cpn Matut,ty S&P Moody's Coy Stn tqW OAS dote. Target Lot: 12 Month% URI 11/15/2024 BB Ill LW 850 5 75 358 100 00 104 0 96.0 U691136981194 • Levels as of 09/08/2015 Deutsche Asset 53 & Weah firtariacement CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0075513 CONFIDENTIAL SDNY_GM_00221697 EFTA01378344