Hertz expects to set pricing in tender for notes on Dec. 14

New York, Dec. 13 - Hertz Corp. said it expects to set pricing in its tender offer for its various series of notes at 2 p.m. ET on Dec. 14.

At the previous announcement on Monday, Hertz extended the expiration date. For notes being bought at a fixed price it is 5 p.m. ET on Dec. 20 while for those being bought at a fixed spread it is midnight ET Dec. 30.

The old expiration was 5 p.m. ET on Dec. 9. For some series of notes that was also the deadline to receive the full payment, including the consent premium - for others the deadline was 5 p.m. ET on Oct. 28.

The Park Ridge, N.J., car rental firm announced the cash tender offer on Oct. 17 and said it is also soliciting consents to amend the note indentures for the dollar-denominated notes.

Tender prices are either fixed in advance or will be set using a fixed spread over a reference Treasury.

The response so far and the prices on offer are as follows:

• For its $250 million of 6½% senior notes due May 15, 2006, a price based on a spread of 50 basis points over the 2% U.S. Treasury note due May 15, 2006 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Dec. 9, holders had tendered $163.130 million or 65.25% of the notes, up from $160.478 million at 5 p.m. ET on Nov. 30;

• For its $500 million of 4.7% senior notes due Oct. 2, 2006, a price based on a spread of 62.5 basis points over the 2½% U.S. Treasury note due Sept. 30, 2006 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Dec. 9, holders had tendered $423.529 million or 84.71% of the notes, up from $420.607 million at 5 p.m. ET on Nov. 30;

• For its $6.859 million of 6.3% senior notes due Nov. 15, 2006, a price based on a spread of 62.5 basis points over the 2 5/8% U.S. Treasury note due Nov. 15, 2006 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Dec. 9, holders had tendered $2.199 million or 32.06% of the notes, up from $2.009 million at 5 p.m. ET on Nov. 30;

• For its $500 million of 7 5/8% senior notes due Aug. 15, 2007, a price based on a spread of 100 basis points over the 2¾% U.S. Treasury note due Aug. 15, 2007 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Dec. 9, holders had tendered $374.968 million or 74.99% of the notes, unchanged from 5 p.m. ET on Nov. 30;

• For its $200 million of 6 5/8% senior notes due May 15, 2008, a price based on a spread of 125 basis points over the 3¾% U.S. Treasury note due May 15, 2008 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Dec. 9, holders had tendered $159.422 million or 79.71% of the notes, up from $158.688 million at 5 p.m. ET on Nov. 30;

• For its $300 million of 6¼% senior notes due March 15, 2009, a price based on a spread of 150 basis points over the 2 5/8% U.S. Treasury note due May 15, 2009 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Dec. 9, holders had tendered $231.980 million or 77.33% of the notes, up from $230.969 million at 5 p.m. ET on Nov. 30;

• For its $99.998 million of 9% senior notes due Nov. 1, 2009, a price based on a spread of 150 basis points over the 3 3/8% U.S. Treasury note due Oct. 15, 2009 and including a consent premium of $30.00 per $1,000. By 5 p.m. ET on Dec. 9, holders had tendered $96.399 million or 96.40% of the notes, up from $96.389 million at 5 p.m. ET on Nov. 30;

• For its $250 million of floating-rate notes due Aug. 5, 2008, a price of $1,009.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Dec. 9, holders had tendered $240.982 million or 96.39% of the notes, unchanged from 5 p.m. ET on Nov. 30;

• For its $600 million of 6.35% senior notes due June 15, 2010, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Dec. 9, holders had tendered $549.664 million or 91.61% of the notes, up from $545.077 million at 5 p.m. ET on Nov. 30;

• For its $500 million of 7.40% senior notes due March 1, 2011, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Dec. 9, holders had tendered $378.579 million or 75.72% of the notes, up from $371.38 million at 5 p.m. ET on Nov. 30;

• For its $800 million of 7 5/8% senior notes due June 1, 2012, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Dec. 9, holders had tendered $623.003 million or 77.88% of the notes, up from $615.612 million at 5 p.m. ET on Nov. 30;

• For its $250 million of 6.90% notes due Aug. 15, 2014, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Dec. 9, holders had tendered $228.802 million or 91.52% of the notes, up from $226.548 million at 5 p.m. ET on Nov. 30;

• For its $250 million of 7% senior notes due Jan. 15, 2028, a price of $1,000.00 per $1,000 including a consent premium of $30.00. By 5 p.m. ET on Dec. 9, holders had tendered $221.337 million or 88.53% of the notes, up from $214.272 million at 5 p.m. ET on Nov. 30;

• For its €200 million floating-rate notes due July 2007 issued by Hertz Finance plc, a price of €1,007.50 per €1,000 principal amount including an early tender premium of €30.00. By 5 p.m. ET on Dec. 9, holders had tendered €191.227 million or 95.61% of the notes, up from €160.927 million at 5 p.m. ET on Nov. 30;

For the spread-based pricing, the payment will be the present value of the payment at maturity plus interest up to maturity, discounted using the reference Treasury yield and the fixed spread, minus accrued interest up to but not including the initial settlement date.

Pricing is expected to be set "several business days" before the first date on which Hertz will accept notes for payment.

Notes that had been covered by the additional time to receive the total amount were Hertz's: 7 5/8% senior notes due Aug. 15, 2007, 6 5/8% senior notes due May 15, 2008, floating-rate notes due Aug. 5, 2008, 6¼% senior notes due March 15, 2009, 9% senior notes due Nov. 1, 2009 and euro floating-rate notes due July 2007.

At its previous announcement on Dec. 1, Hertz extended the deadline for holders of these notes to receive the full payment amount to be the same as the tender expiration of 5 p.m. ET on Dec. 9.

On Nov. 18 Hertz extended the expiration date to 5 p.m. ET on Dec. 9 instead of 5 p.m. ET on Nov. 30 and also extended the deadline for holders of some series to receive the full payment amount. The expiration had previously been extended from 8 a.m. ET on Nov. 15.

On Oct. 31, Hertz said it received consents to amend all its notes and extended the expiration.

At that time it also extended the date by which holders can receive the total amount to 5 p.m. ET on Nov. 14 from the consent deadline of 5 p.m. ET on Oct. 28 for the selected series of notes.

For the other notes, holders must have tendered by the early consent deadline of 5 p.m. ET on Oct. 28 to receive the full amount.

Hertz announced the cash tender offer on Oct. 17 and said it was also soliciting consents to amend the note indentures for the dollar-denominated notes.

Holders who tender must deliver consents and vice versa.

The tender is subject to the sale of the company.

Citigroup Corporate and Investment Banking (800 558-3745, or +44 207 986 8969 for the euro notes), Deutsche Bank Securities Inc. (866 627-0391 or +44 207 545 8011 for the euro notes), Goldman, Sachs & Co. (800 828-3182), J.P. Morgan Securities Inc. (866 834-6666 or +44 207 742 7506 for the euro notes) and Lehman Brothers Inc. (800 438-3242 or 212 528-7581) are dealer managers and solicitation agents. Global Bondholder Services Corp. (866 387-1500) is information agent and depositary, and Deutsche Bank Luxembourg SA (+352 42122 460) is Luxembourg tender agent.

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