New Issue: Hertz sells $300 million eight-year senior notes at par to yield 7½%

By Paul A. Harris

St. Louis, Sept. 16 - The Hertz Corp. priced a $300 million issue of eight-year senior notes (B2/CCC+/) at par to yield 7½% on Thursday, according to an informed source.

The yield printed at the tight end of the 7½% to 7¾% price talk.

Barclays Capital Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities were the joint bookrunners for the quick-to-market deal.

Proceeds will be used for general corporate purposes, including the funding of the Dollar Thrifty acquisition, or to repay corporate debt.

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

Issuer:	The Hertz Corp.
Amount:	$300 million
Maturity:	Oct. 15, 2018
Securities:	Senior notes
Bookrunners:	Barclays Capital Inc., Deutsche Bank Securities Inc., Wells Fargo Securities
Coupon:	7½%
Price:	Par
Yield:	7½%
Spread:	508 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2014, then callable at 103.75, 101.875, par on and after Oct. 15, 2016
Equity clawback:	35% at 107.50 until Oct. 15, 2013
Change-of-control put:	101%
Trade date:	Sept. 16
Settlement date:	Sept. 30
Ratings:	Moody's: B2
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7½% to 7¾%
Marketing:	Quick to market

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