By Paul A. Harris
Portland, Ore., June 24 – HERC Holdings Inc. priced an upsized $1.2 billion issue of eight-year senior notes (B3/B+) at par to yield 5½% in a quick-to-market Monday trade, according to market sources.
The issue size increased from $1 billion.
The yield printed at the tight end of yield talk and early guidance, both of which had been set in the 6 5/8% area.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Credit Agricole CIB, and Capital One Securities Inc. were the joint bookrunners.
The Bonita Springs, Fla.-based equipment rental company plans to use the proceeds to redeem its second-lien notes and pay down its asset-backed revolving credit facility.
| Issuer: | HERC Holdings Inc.
|
| Amount: | $1.2 billion, increased from $1 billion
|
| Maturity: | July 15, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Credit Agricole CIB, Capital One Securities Inc.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 357 bps
|
| Call protection: | Three years
|
| Trade date: | June 24
|
| Settlement date: | July 9
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5 5/8% area
|
| Marketing: | Quick to market
|
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