New Issue: Hertz prices upsized $500 million 8.25-year notes at par to yield 6¾%

By Paul A. Harris

Portland, Ore., Jan. 25 - Hertz Corp. priced an upsized $500 million issue of 8.25-year senior notes (B2/B-) at par to yield 6¾% on Tuesday, according to an informed source.

The yield printed on top of the price talk. The amount was increased from $300 million.

Barclays Capital, Bank of America Merrill Lynch, Citigroup, Credit Agricole CIB, Deutsche Bank Securities, J.P. Morgan Securities LLC and Wells Fargo Securities were the joint bookrunners for the quick-to-market issue.

Proceeds, including the additional proceeds from the upsizing, will be used to redeem a portion of the company's 8 7/8% senior notes due 2014.

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

Issuer:	Hertz Corp.
Amount:	$500 million (increased from $300 million)
Maturity:	April 15, 2019
Securities:	Senior notes
Bookrunners:	Barclays Capital, Bank of America Merrill Lynch, Citigroup, Credit Agricole CIB, Deutsche Bank Securities, J.P. Morgan Securities LLC, Wells Fargo Securities
Co-managers:	BNP Paribas, Natixis Bleichroeder, RBS Securities
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Spread:	379 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 15, 2015, then callable at 103.375, 101.688, declining to par on and after April 15, 2017
Equity clawback:	35% at 106.75 until April 15, 2014
Trade date:	Jan. 25
Settlement date:	Feb. 8
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6 ¾%
Marketing:	Quick to market

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