Hertz to price $1.5 billion two-part notes in Wednesday drive-by

By Paul A. Harris

Portland, Ore., Nov. 17 – Hertz Corp. plans to price $1.5 billion of senior notes (Caa1/B) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

The Rule 144A and Regulation S for life deal comes evenly split in tranches of five-year notes and eight-year notes.

A $750 million tranche of five-year notes with two years of call protection is in the market with initial guidance in the 5% area.

A $750 million tranche of eight-year notes with three years of call protection has initial guidance in the mid-5% area.

Left bookrunner Barclays will bill and deliver. J.P. Morgan Securities LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets LLC, Credit Agricole CIB, Natixis Securities Americas LLC and BofA Securities Inc. are also joint bookrunners.

The Estero, Fla.-based car rental company plans to use part of the proceeds to fund a tender offer for its preferred equity securities, with up to $250 million of the proceeds to fund general corporate purposes. Proceeds in excess of $250 million remaining from the tender will be subject to mandatory redemption at par plus accrued interest.

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