By Paul A. Harris
Portland, Ore., Sept. 8 – Hertz Global Holdings priced an upsized $800 million issue of 5½% eight-year senior notes at par to yield 5.499% on Thursday, according to a market source.
The issue size was increased from $500 million.
The yield came at the tight end of the 5½% to 5 5/8% yield talk. Initial guidance was 5½% to 5¾%.
Lead left active bookrunner Barclays will bill and deliver for the Rule 144A and Regulation S offering. Citigroup Global Markets Inc. was 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 were the passive bookrunners.
The Estero, Fla.-based vehicle rental company plans to use the proceeds, including the additional amount resulting from the $300 million upsizing of the deal, to redeem $800 million 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.
| Issuer: | Hertz Corp.
|
| Amount: | $800 million, increased from $500 million
|
| Maturity: | Oct. 15, 2024
|
| Securities: | Senior notes
|
| Left active bookrunner: | Barclays (bill and deliver)
|
| Joint active bookrunner: | Citigroup Global Markets Inc.
|
| Passive bookrunners: | BofA Merrill Lynch, BMO Securities, BNP Paribas Securities Corp., Credit Agricole CIB, Goldman Sachs & Co., J.P. Morgan Securities LLC, RBC Capital Markets
|
| Co-managers: | Capital One, Deutsche Bank Securities Inc., Mizuho Securities, Natixis, RBS Securities Inc., Scotia Capital, UniCredit
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5.499%
|
| First call: | Oct. 15, 2019 at 104.125
|
| Equity clawback: | 40% at 105.5 until Oct. 15, 2019
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 22
|
| Rating: | S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% to 5 5/8%
|
| Marketing: | Quick to market
|
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