Published on 11/14/2019 in the Prospect News High Yield Daily.
New Issue: Hertz prices upsized $900 million 6% notes due January 2028 at par
By Paul A. Harris
Portland, Ore., Nov. 14 – Hertz Corp. priced an upsized $900 million issue of 6% senior notes due Jan. 15, 2028 (B3/B-) at par to yield 5.998% in a quick-to-market Thursday trade, according to market sources.
The issue size increased from $750 million.
The yield printed at the wide end of the 5¾% to 6% yield talk and in line with initial talk in the 6% area.
Lead left bookrunner Barclays will bill and deliver. Joint bookrunners were Credit Agricole CIB, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC.
The Estero, Fla.-based car rental company plans to use the proceeds, including the additional proceeds resulting from the $150 million upsizing of the deal, to redeem a portion of its 7 5/8% senior secured second priority notes due 2022.
| Issuer: | Hertz Corp.
|
| Amount: | $900 million, increased from $750 million
|
| Maturity: | Jan. 15, 2028
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Barclays (bill and deliver)
|
| Joint bookrunners: | Credit Agricole CIB, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC
|
| Co-managers: | BofA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., CIBC World Markets, Citizens Capital Markets Inc., HSBC Securities (USA) Inc., Lloyds Securities LLC, Natixis Securities America Inc. and Scotia Capital (USA) Inc.
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 5.998%
|
| Spread: | 423 bps
|
| First call: | Jan. 15, 2023 at 103
|
| Equity clawback: | 40% at 106 until Jan. 15, 2023
|
| Trade date: | Nov. 14
|
| Settlement date: | Nov. 25
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¾% to 6%
|
| Marketing: | Quick to market
|
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