Published on 3/7/2011 in the Prospect News High Yield Daily.
New Issue: Hertz sells $500 million add-on to 6¾% notes due 2019 at 100.375
By Paul A. Harris
Portland, Ore., March 7 - The Hertz Corp. priced an upsized $500 million add-on to its 6¾% senior notes due April 15, 2019 (B3/B-/) at 100.375 on Monday.
The pricing resulted in a 6.69% yield to worst.
The deal priced in line with price talk of par to 100.5.
J.P. Morgan Securities LLC, Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc. and Wells Fargo Securities were the joint bookrunners for the quick-to-market issue, which was upsized from $300 million.
The Park Ridge, N.J.-based auto and equipment rental company will use the proceeds to redeem a portion of its 8 7/8% senior notes due 2014.
| Issuer: | The Hertz Corp.
|
| Face amount: | $500 million, increased from $300 million
|
| Proceeds: | $501,875,000
|
| Maturity: | April 15, 2019
|
| Securities: | Add-on to the 6¾% senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., Wells Fargo Securities
|
| Co-managers: | BMO Nesbitt Burns
|
| Coupon: | 6¾%
|
| Price: | 100.375
|
| Yield: | 6.69%
|
| Spread: | 353 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2015, then callable at 103.375, 101.688, par on and after April 15, 2017
|
| Equity clawback: | 35% at 106.75 until April 15, 2014
|
| Change of control put: | 101%
|
| Trade date: | March 7
|
| Settlement date: | March 21
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 100 to 100.5
|
| Marketing: | Quick to market
|
| Original issue: | $500 million priced at par on Jan. 25, 2011
|
| Total issue size: | $1 billion
|
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