Hertz to sell $1.1 billion secured notes this week, to finance spinoff of equipment rental business

By Paul A. Harris

Portland, Ore., May 24 – Hertz Equipment Rental Corp. plans to sell $1.1 billion of senior secured second priority notes in tranches maturing in 2022 and 2024 on Wednesday or Thursday, according to a market source.

BofA Merrill Lynch, Goldman Sachs & Co., Barclays, BMO Securities, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, J.P. Morgan Securities LLC and RBC Capital Markets are managing the sale.

The notes in both Rule 144A and Regulation S tranches come with three years of call protection.

The issuing entities will be Herc Spinoff Escrow Issuer, LLC and Herc Spinoff Escrow Issuer, Corp., wholly owned subsidiaries of Hertz Equipment Rental.

Proceeds will be used to finance the proposed spinoff of Hertz Global's equipment rental business.

The prospective issuer is an Estero, Fla-based equipment rental company.

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