Hertz Global (HTZ) Announces Aggregate $1.2B Notes Offering
Tweet
Share
E-mailGet Alerts HTZ Hot Sheet
Join SI Premium – FREE
Hertz Global Holdings, Inc. (NYSE: HTZ) announced that a newly-formed, wholly-owned subsidiary of the Company, HDTFS, Inc. (the "Escrow Issuer"), intends to offer $600,000,000 aggregate principal amount of senior notes due 2020 (the "2020 Notes") and $600,000,000 aggregate principal amount of senior notes due 2022 (the "2022 Notes" and, together with the 2020 Notes, the "Notes") in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), subject to market and other conditions. Each series of Notes will pay interest semi-annually in arrears. The final terms of each series of Notes will be determined at the time of pricing of the Notes.
Concurrently with the closing of the offering, the gross proceeds of the offering (plus an amount related to interest that would accrue on the Notes through a specified date) will be deposited into an escrow account until the date on which certain escrow conditions are satisfied, including the substantially concurrent (i) consummation of the previously announced cash tender offer (the "Tender Offer") to purchase all outstanding shares of common stock of Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) ("Dollar Thrifty") and (ii) assumption of the Escrow Issuer's obligations under each series of Notes by The Hertz Corporation ("Hertz"), a wholly-owned subsidiary of the Company. From and after the release of the escrowed funds to Hertz, each series of Notes is expected to be guaranteed on a senior unsecured basis by the domestic subsidiaries of Hertz that guarantee its senior credit facilities from time to time.
Following the release of proceeds of the offering from escrow to Hertz upon satisfaction of the escrow conditions, Hertz intends to use the entire net proceeds from the offering of the Notes (i) to finance or refinance a portion of the consideration payable in the Tender Offer and subsequent merger (which is subject to the approval of Dollar Thrifty's shareholders if required by law) of a wholly-owned subsidiary of Hertz with and into Dollar Thrifty (the "Acquisition"), (ii) to refinance certain existing indebtedness of Dollar Thrifty (including by providing funds to Dollar Thrifty for such purpose) following the consummation of the Tender Offer, (iii) to pay fees and expenses incurred in connection with the foregoing transactions and/or (iv) to finance the working capital and business requirements, and for general corporate purposes, of Hertz and its subsidiaries.
If the escrow conditions are not satisfied on or prior to February 26, 2013, the Escrow Issuer delivers a notification that such conditions will not be satisfied or the merger agreement governing the Acquisition is terminated, the Escrow Issuer will be required to redeem each series of Notes in full at a price equal to 100% of the applicable initial issue price of such Notes, plus accrued and unpaid interest from the date of issuance of such Notes up to, but excluding, the payment date of such mandatory redemption.
Concurrently with the closing of the offering, the gross proceeds of the offering (plus an amount related to interest that would accrue on the Notes through a specified date) will be deposited into an escrow account until the date on which certain escrow conditions are satisfied, including the substantially concurrent (i) consummation of the previously announced cash tender offer (the "Tender Offer") to purchase all outstanding shares of common stock of Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) ("Dollar Thrifty") and (ii) assumption of the Escrow Issuer's obligations under each series of Notes by The Hertz Corporation ("Hertz"), a wholly-owned subsidiary of the Company. From and after the release of the escrowed funds to Hertz, each series of Notes is expected to be guaranteed on a senior unsecured basis by the domestic subsidiaries of Hertz that guarantee its senior credit facilities from time to time.
Following the release of proceeds of the offering from escrow to Hertz upon satisfaction of the escrow conditions, Hertz intends to use the entire net proceeds from the offering of the Notes (i) to finance or refinance a portion of the consideration payable in the Tender Offer and subsequent merger (which is subject to the approval of Dollar Thrifty's shareholders if required by law) of a wholly-owned subsidiary of Hertz with and into Dollar Thrifty (the "Acquisition"), (ii) to refinance certain existing indebtedness of Dollar Thrifty (including by providing funds to Dollar Thrifty for such purpose) following the consummation of the Tender Offer, (iii) to pay fees and expenses incurred in connection with the foregoing transactions and/or (iv) to finance the working capital and business requirements, and for general corporate purposes, of Hertz and its subsidiaries.
If the escrow conditions are not satisfied on or prior to February 26, 2013, the Escrow Issuer delivers a notification that such conditions will not be satisfied or the merger agreement governing the Acquisition is terminated, the Escrow Issuer will be required to redeem each series of Notes in full at a price equal to 100% of the applicable initial issue price of such Notes, plus accrued and unpaid interest from the date of issuance of such Notes up to, but excluding, the payment date of such mandatory redemption.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Boeing names Ryan Shedd as new SVP and controller
- Cytek faces $56M damages award in Beckman Coulter patent case
- CoVolt Power files for proposed IPO
Create E-mail Alert Related Categories
Corporate NewsRelated Entities
Dollar Thrifty TakeoverSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
