Hertz extends expiration for tender for notes, extends date to receive total payment for some series

New York, Nov. 18 - Hertz Corp. announced the results so far for its cash tender offer for its various series of notes, extended the expiration date and also extended the deadline for holders of some series to receive the full payment amount.

The new expiration is 5 p.m. ET on Dec. 9 instead of 5 p.m. ET on Nov. 30. It was previously extended from 8 a.m. ET on Nov. 15.

The Park Ridge, N.J., car rental firm announced the cash tender offer on Oct. 17 and said it is also soliciting consents to amend the note indentures for the dollar-denominated notes.

Tender prices are either fixed in advance or will be set using a fixed spread over a reference Treasury.

The response so far and the prices on offer are as follows:

* For its $250 million of 6½% senior notes due May 15, 2006, a price based on a spread of 50 basis points over the 2% U.S. Treasury note due May 15, 2006 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Nov. 16, holders had tendered $159.314 million or 63.73% of the notes, up from $157.741 million or 63.10% at the consent deadline;

* For its $500 million of 4.7% senior notes due Oct. 2, 2006, a price based on a spread of 62.5 basis points over the 2 ½% U.S. Treasury note due Sept. 30, 2006 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Nov. 16, holders had tendered $420.607 million or 84.12%, up from $415.325 million or 83.07% at the consent deadline;

* For its $6.9 million of 6.3% senior notes due Nov. 15, 2006, a price based on a spread of 62.5 basis points over the 2 5/8% U.S. Treasury note due Nov. 15, 2006 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Nov. 16, holders had tendered $1.961 million or 28.59%, up from $1.912 million or 27.88% at the consent deadline;

* For its $500 million of 7 5/8% senior notes due Aug. 15, 2007, a price based on a spread of 100 basis points over the 2 ¾% U.S. Treasury note due Aug. 15, 2007 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Nov. 16, holders had tendered $370.941 million or 74.19%, up from $361.341 million or 72.27% at the consent deadline. For this series, holders can now receive the early consent payment if they tender by 5 p.m. ET on Nov. 30;

* For its $200 million of 6 5/8% senior notes due May 15, 2008, a price based on a spread of 125 basis points over the 3 ¾% U.S. Treasury note due May 15, 2008 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Nov. 16, holders had tendered $157.877 million or 78.94%, up from $155.775 million or 77.89% at the consent deadline. For this series, holders can now receive the early consent payment if they tender by 5 p.m. ET on Nov. 30;

* For its $300 million of 6¼% senior notes due March 15, 2009, a price based on a spread of 150 basis points over the 2 5/8% U.S. Treasury note due May 15, 2009 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Nov. 16, holders had tendered $229.637 million or 76.55%, up from $221.945 million or 73.98% at the consent deadline. For this series, holders can now receive the early consent payment if they tender by 5 p.m. ET on Nov. 30;

* For its $99.9 million of 9% senior notes due Nov. 1, 2009, a price based on a spread of 150 basis points over the 3 3/8% U.S. Treasury note due Oct. 15, 2009 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Nov. 16, holders had tendered $96.282 million or 96.28%, up from $95.983 million or 95.98% at the consent deadline. For this series, holders can now receive the early consent payment if they tender by 5 p.m. ET on Nov. 30;

* For its $250 million of floating-rate notes due Aug. 5, 2008, a price of $1,009.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Nov. 16, holders had tendered $240.582 million or 96.23%, up from $240.332 million or 96.13% at the consent deadline. For this series, holders can now receive the early consent payment if they tender by 5 p.m. ET on Nov. 30;

* For its $600 million of 6.35% senior notes due June 15, 2010, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Nov. 16, holders had tendered $535.062 million or 89.18%, up from $534.184 million or 89.03% at the consent deadline;

* For its $500 million of 7.40% senior notes due March 1, 2011, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Nov. 16, holders had tendered $371.308 million or 74.26%, up from $370.510 million or 74.10% at the consent deadline;

* For its $800 million of 7 5/8% senior notes due June 1, 2012, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Nov. 16, holders had tendered $598.650 million or 74.83%, up from $597.004 million or 74.63% at the consent deadline;

* For its $250 million of 6.90% notes due Aug. 15, 2014, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Nov. 16, holders had tendered $226.508 million or 90.60%, up from $225.043 million or 90.02% at the consent deadline;

* For its $250 million of 7% senior notes due Jan. 15, 2028, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Nov. 16, holders had tendered $214.048 million or 85.62%, up from $213.046 million or 85.22% at the consent deadline; and

* For its €200 million floating-rate notes due July 2007 issued by Hertz Finance plc, a price of €1,007.50 per €1,000 principal amount including an early tender premium of €30.00. By 5 p.m. ET on Nov. 16, holders had tendered €160.927 million or 80.46%. The previously announced figure of €175.097 million or 87.55% was wrong, Hertz said. . For this series, holders can now receive the early consent payment if they tender by 5 p.m. ET on Nov. 30.

For the spread-based pricing, the payment will be the present value of the payment at maturity plus interest up to maturity, discounted using the reference Treasury yield and the fixed spread, minus accrued interest up to but not including the initial settlement date.

Pricing is expected to be set "several business days" before the first date on which Hertz will accept notes for payment.

At its previous announcement on Oct. 31, Hertz said it received consents to amend all its notes and extended the expiration.

At that time it also extended the date by which holders can receive the total amount to 5 p.m. ET on Nov. 14 from the consent deadline of 5 p.m. ET on Oct. 28 for some notes, namely its: 7 5/8% senior notes due Aug. 15, 2007, 6 5/8% senior notes due May 15, 2008, floating-rate notes due Aug. 5, 2008, 6¼% senior notes due March 15, 2009, 9% senior notes due Nov. 1, 2009 and euro floating-rate notes due July 2007.

For the other notes, holders must have tendered by the early consent deadline of 5 p.m. ET on Oct. 28 to receive the full amount.

The Park Ridge, N.J., car rental firm announced the cash tender offer on Oct. 17 and said it is also soliciting consents to amend the note indentures for the dollar-denominated notes.

Holders who tender must deliver consents and vice versa.

The tender is subject to the sale of the company.

Citigroup Corporate and Investment Banking (800 558-3745, or +44 207 986 8969 for the euro notes), Deutsche Bank Securities Inc. (866 627-0391 or +44 207 545 8011 for the euro notes), Goldman, Sachs & Co. (800 828-3182), J.P. Morgan Securities Inc. (866 834-6666 or +44 207 742 7506 for the euro notes) and Lehman Brothers Inc. (800 438-3242 or 212 528-7581) are dealer managers and solicitation agents. Global Bondholder Services Corp. (866 387-1500) is information agent and depositary, and Deutsche Bank Luxembourg SA (+352 42122 460) is Luxembourg tender agent.

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