Hertz to price $500 million eight-year notes in Thursday drive-by, €225 million next week

By Paul A. Harris

Portland, Ore., Sept. 8 – Hertz Global Holdings plans to price a $500 million offering of eight-year senior notes on Thursday following a late-morning conference call with investors, according to market sources.

Initial guidance has the deal yielding 5½% to 5¾%, according to a trader.

Lead left active bookrunner Barclays will bill and deliver for the Rule 144A and Regulation S offering. Citigroup Global Markets Inc. is also an active bookrunner.

BofA Merrill Lynch, BMO Securities, BNP Paribas Securities Corp., Credit Agricole CIB, Goldman Sachs & Co., J.P. Morgan Securities LLC and RBC Capital Markets are the passive bookrunners.

Capital One, Deutsche Bank Securities Inc., Mizuho Securities, Natixix, RBS Securities Inc., Scotia Capital and UniCredit are the co-managers.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

The Estero, Fla.-based vehicle rental company plans to use the proceeds to fund the partial redemption of its 6¾% senior notes due 2019.

The company also announced in a Thursday press release that Hertz Holdings Netherlands BV plans to come to market with a €225 million offering of senior notes in the week ahead, pending market conditions.

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