Hertz to tender for up to $2.3 billion of debt securities for sale by Ford

By Jennifer Chiou

New York, Sept. 12 -The Hertz Corp. announced it plans to tender for up to $2.3 billion of its outstanding debt securities as part of Ford Motor Co.'s sale of the company.

Hertz will also soliciting consents to amend the notes' indentures.

Hertz will tender for its:

* $250 million of 6½% senior notes due May 15, 2006;

* $500 million of 4.7% senior notes due Oct. 2, 2006;

* €200 million of floating-rate notes due July 16, 2007

* $6,859,000 of 6.3% senior notes due Nov. 15, 2006;

* $500 million of 7 5/8% senior notes due Aug. 15, 2007;

* $200 million of 6 5/8% senior notes due May 15, 2008;

* $250 million of floating-rate notes due Aug. 5, 2008;

* $300 million of 6¼% notes due March 15, 2009;

* $100 million of 9% senior notes due Nov. 1, 2009.

The offers are conditioned upon Ford's $15 billion sale of Hertz to an investor group, which includes Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity. Ford expects the sale to be completed by the end of 2005.

Ford Motor Credit, an automotive finance company based in Dearborn, Mich., said it intends to file a registration statement with the Securities and Exchange Commission to issue its debt securities in exchange for up to $2.4 billion of Hertz's outstanding debt.

Ford Motor Credit is offering to exchange the following Hertz debt securities for Ford Motor Credit debt securities with the same coupon and maturity date:

* $600 million of 6.35% senior notes due June 15, 2010;

* $500 million of 7.4% senior notes due March 1, 2011;

* $800 million of 7 5/8% senior notes due June 1, 2012;

* $250 million of 6.9% notes due Aug. 15, 2014;

* $250 million of 7% senior notes due Jan. 15, 2028.

Ford Motor Credit will also solicit consents to amend the note indentures.

The buyers of Hertz will pay cash to Ford Motor Credit for any notes tendered.

Based in Park Ridge, N.J, Hertz operates a car rental business.

© 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.