New Issue: Hertz prices $400 million add-on to 7½% notes due 2018 at par

By Paul A. Harris

St. Louis, Sept. 20 - Hertz Corp. priced a $400 million add-on to its 7½% senior notes due Oct. 15, 2018 (B2/CCC+) at par to yield 7½%, on Monday, according to an informed source.

The reoffer price came on top of the price talk.

Barclays Capital, Deutsche Bank Securities and Wells Fargo Securities were joint bookrunners for the quick-to-market issue.

Proceeds will be used for general corporate purposes including helping to fund the acquisition of Dollar Thrifty, or if the acquisition does not close, to repay corporate debt.

The add-on came less than a week following the print of the original $300 million issue, which priced at par on Sept. 16.

Hertz is a Park Ridge, N.J.-based auto and equipment rental company.

Issuer:	Hertz Corp.
Amount:	$400 million
Maturity:	Oct. 15, 2018
Securities:	Add-on to 7½% senior notes due Oct. 15, 2018
Bookrunners:	Barclays Capital, Deutsche Bank Securities, Wells Fargo Securities
Co-lead managers:	Bank of America Merrill Lynch, Credit Agricole CIB
Coupon:	7½%
Price:	Par
Yield:	7½%
Spread:	512 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2014, then callable at 103.75, 101.875, declining to par on and after Oct. 15, 2016
Equity clawback:	35% at 107.50 until Oct. 15, 2013
Change-of-control put:	101%
Trade date:	Sept. 20
Settlement date:	Sept. 30 with accrued interest
Ratings:	Moody's: B2
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	Par
Marketing:	Quick to market
Original issue:	$300 million priced at par on Sept. 16
Total issue size:	$700 million

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