Hertz prices upsized $450 million convertibles at 5.25%, up 27.5%

New York, May 20 - Hertz Global Holdings Inc. priced a substantially upsized $450 million of five-year convertible senior notes after the close Wednesday to yield 5.25% with a 27.5% initial conversion premium.

The deal was increased from a planned $250 million and came at the midpoint of talk, which put the yield at 5.25% to 5.75% and the conversion premium at 22.5% to 27.5%.

Hertz also priced an upsized 46 million shares at $6.50 each, increased from a proposed 40 million shares.

The conversion price on the convertibles is $8.2875 and the conversion ratio is 120.6637.

They mature on June 1, 2014.

The greenshoe was increased to $67.5 million from $37.5 million.

Hertz's new convertibles are non-callable and putable at par on a fundamental change.

The registered offering was sold via J.P. Morgan Securities Inc., Goldman, Sachs & Co., Merrill Lynch & Co. and Barclays Capital Inc.

In addition, investment funds associated with Clayton, Dubilier & Rice, Inc. and the Carlyle Group, existing stockholders of Hertz Holdings, purchased 32,102,728 shares at $6.23 each, the price in the public offering less the underwriting discount.

Hertz intends to use the proceeds from the offerings to increase its liquidity and for general corporate purposes, including the repayment of consolidated debt.

Hertz is a Park Ridge, N.J.-based auto and equipment rental company.

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