New Issue: Hertz prices $500 million seven-year notes at par to yield 7 1/8%

By Paul A. Harris

Portland, Ore., July 18 – Hertz Corp. priced a $500 million issue of seven-year senior notes (B3/B-) at par to yield 7 1/8% in a quick-to-market Thursday trade, according to market sources.

The yield printed at the tight end of yield talk in the 7¼% area. Initial talk was in the 7 3/8% area.

Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Barclays, BofA Securities Inc., Credit Agricole CIB and RBC Capital Markets LLC.

The Estero, Fla.-based car rental company plans to use the proceeds, together with proceeds from a rights offering, to redeem its 5 7/8% senior notes due 2020 and its 7 3/8% senior notes due 2021, in their entirety, and for general corporate purposes.

Issuer:	Hertz Corp.
Amount:	$500 million
Maturity:	Aug. 1, 2026
Securities:	Senior notes
Left bookrunner:	Goldman Sachs & Co. LLC
Joint bookrunners:	Barclays, BofA Securities Inc., Credit Agricole CIB and RBC Capital Markets LLC
Co-managers:	BMO Capital Markets Corp., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Jefferies LLC and Mizuho Securities USA Inc.
Coupon:	7 1/8%
Price:	Par
Yield:	7 1/8%
Call protection:	Three years
Trade date:	July 18
Settlement date:	Aug. 1
Ratings:	Moody's: B3
	S&P: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	7¼% area
Marketing:	Quick to market

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