By Rebecca Melvin
New York, May 21 - Hertz Global Holdings Inc. priced a substantially upsized $450 million offering of five-year convertible senior notes after the close Wednesday to yield 5.25% with a 27.5% initial conversion premium.
Details of the convertibles issue were reported in the May 21 edition of the Prospect News Convertibles Daily.
The deal was increased from a planned $250 million and came at the aggressive end of talk, which was for a yield of 5.25% to 5.75% and a conversion premium of 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.
The greenshoe was increased to $67.5 million from $37.5 million.
Hertz's new convertibles are non-callable and are 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.
| Issuer: | Hertz Global Holdings Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $450 million, upsized from $250 million
|
| Greenshoe: | $67.5 million, increased from $37.5 million
|
| Maturity: | June 1, 2014
|
| Bookrunners: | J.P. Morgan Securities Inc., Goldman Sachs & Co., Merrill Lynch & Co. and Barclays Capital Inc.
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $8.2875
|
| Conversion ratio: | 120.6637
|
| Price talk: | 5.25%-5.75%, up 22.5%-27.5%
|
| Call: | Non-callable for life
|
| Puts: | Change-of-control put
|
| Pricing date: | May 20, after the close
|
| Settlement date: | May 27
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: HTZ
|
| Market capitalization: | $2.09 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
