By Paul A. Harris
St. Louis, Dec. 15 - Hertz Corp. priced bonds in a downsized amount of roughly $2.67 billion in three tranches on Thursday, according to a syndicate source.
The Park Ridge, N.J., vehicle rental company priced a $1.8 billion tranche of eight-year senior notes (B1/B/BB-) at par to yield 8 7/8%, tight to the 9% area price talk. The tranche was downsized from $1.95 billion.
Hertz also priced a €225 million tranche of eight-year senior notes (B1/B/BB-) at par to yield 7 7/8%, at the tight end of the 8% area price talk.
In addition, the company priced a $600 million tranche of 10-year senior subordinated notes (B3/B/B+) at par to yield 10½%, inside of the 10¾% area price talk.
Deutsche Bank Securities, Lehman Brothers, JP Morgan, Goldman Sachs & Co. and Merrill Lynch & Co. were joint bookrunners for the Rule 144A/Regulation S transaction.
BNP Paribas, The Royal Bank of Scotland and Calyon Securities were joint lead managers.
Proceeds will help fund the roughly $15 billion leveraged buyout of the company by Clayton, Dubilier & Rice Inc., The Carlyle Group and Merrill Lynch Global Private Equity from Ford Motor Co.
The total amount of the three tranches was downsized from about $2.80 billion.
| Issuer: | Hertz Corp.
|
| Amount: | $2.67 billion (decreased from $2.80 billion)
|
| Bookrunners: | Deutsche Bank Securities, Lehman Brothers, JP Morgan, Goldman Sachs & Co., Merrill Lynch & Co.
|
| Joint lead managers: | BNP Paribas, The Royal Bank of Scotland, Calyon Securities
|
| Trade date: | Dec. 15
|
| Settlement date: | Dec. 21
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Dollar-denominated senior notes
|
| Amount: | $1.80 billion (decreased from $1.95 billion)
|
| Maturity: | Jan. 1, 2014
|
| Security description: | Senior notes
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 445 basis points
|
| Call protection: | Four years
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Fitch: BB-
|
| Price talk: | 9% area
|
|
|
| Euro-denominated senior notes
|
| Amount: | €225 million
|
| Maturity: | Jan. 1, 2014
|
| Security description: | Senior notes
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 461 basis points
|
| Call protection: | Four years
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Fitch: BB-
|
| Price talk: | 8% area
|
|
|
| Senior subordinated notes
|
| Amount: | $600 million
|
| Maturity: | Jan. 1, 2016
|
| Security description: | Senior subordinated notes
|
| Coupon: | 10½%
|
| Price: | Par
|
| Yield: | 10½%
|
| Spread: | 604 basis points
|
| Call protection: | Five years
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Fitch: B+
|
| Price talk: | 10¾% area
|
|
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