Hertz to price $500 million seven-year notes in Thursday drive-by; initial talk 7 3/8% area

By Paul A. Harris

Portland, Ore., July 18 – Hertz Corp. plans to sell $500 million of seven-year senior notes (existing ratings B3/B-) in a quick-to-market Thursday trade following a late-morning conference call with investors, according to market sources.

Initial price talk has the Rule 144A and Regulation S for life deal coming to yield in the 7 3/8% area, a trader said.

Goldman Sachs & Co. LLC is the left bookrunner. Barclays, BofA Securities Inc., Credit Agricole CIB and RBC Capital Markets LLC are the joint bookrunners. BMO Securities, BNP Paribas Securities Corp., Citizens Bank, Deutsche Bank Securities Inc., Jefferies LLC and Mizuho Securities USA Inc. are the co-managers.

The notes become callable after three years at par plus 50% of the coupon.

The Estero, Fla.-based car rental company plans to use the proceeds, together with proceeds from a rights offering, to redeem its 5 7/8% senior notes due 2020 and its 7 3/8% senior notes due 2021, in their entirety, and for general corporate purposes.

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