New Issue: Hertz sells $1.2 billion eight-, 10-year notes in two resized tranches

By Paul A. Harris

Portland, Ore., Oct. 1 - The Hertz Corp. priced $1.2 billion of senior notes (B2/B/) in two resized tranches on Monday, according to a market source.

The deal included an upsized $700 million tranche of eight-year notes, which priced at par to yield 5 7/8%. The tranche was upsized from $600 million. The yield printed at the tight end of yield talk that was set in the 6% area.

Hertz also priced a downsized $500 million tranche of 10-year notes at par to yield 6¼%. The tranche was downsized from $600 million. The yield printed at the tight end of the 6¼% to 6½% yield talk.

Barclays was the lead left bookrunner for the quick-to-market deal.

Barclays, Deutsche Bank Securities Inc. and Bank of America Merrill Lynch were the joint physical bookrunners.

BMO Securities, BNP Paribas, Credit Agricole CIB, Natixis, RBS Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.

The Park Ridge, N.J.-based auto and equipment rental company plans to use the proceeds to help fund the acquisition of Dollar Thrifty Automotive Group Inc.

Issuer:	The Hertz Corp. (HDTFS, Inc. prior to the escrow release)
Amount:	$1.2 billion
Securities:	Senior notes
Lead left bookrunner:	Barclays
Physical bookrunners:	Barclays, Deutsche Bank Securities Inc., Bank of America Merrill Lynch
Joint bookrunners:	BMO Securities, BNP Paribas, Credit Agricole CIB, Natixis, RBS Securities Inc., Wells Fargo Securities LLC
Co-managers:	Fifth Third Securities, PNC Capital Markets, Scotia Capital, SunTrust Robinson Humphrey
Trade date:	Oct. 1
Settlement date:	Oct. 16
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Marketing:	Quick to market
Eight-year notes
Amount:	$700 million, increased from $600 million
Maturity:	Oct. 15, 2020
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	462 bps
First call:	Callable in three years at 104.406
Price talk:	6% area
10-year notes
Amount:	$500 million, decreased from $600 million
Maturity:	Oct. 15, 2022
Coupon:	6¼%
Price:	Par
Yield:	6¼%
Spread:	463 bps
First call:	Callable in five years at 103.125
Price talk:	6¼% to 6½%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.