Hertz (HTZ) to Offer 40M Common Shares, $250M in Convertible Senior Notes

May 19, 2009 5:17 PM EDT

Hertz Global Holdings, Inc. (NYSE: HTZ) today announced a public offering of common stock and convertible senior notes.

Hertz Holdings intends to offer approximately 40,000,000 shares of common stock in an underwritten registered public offering. In connection with this offering, Hertz Holdings intends to grant the underwriters a 30-day option to purchase up to an additional 6,000,000 shares of common stock. In addition, investment funds associated with Clayton, Dubilier & Rice, Inc. and The Carlyle Group, existing stockholders of Hertz Holdings, are expected to purchase at least $150,000,000 of common stock in a substantially concurrent transaction, which is expected to close after the public offering of common stock.

Hertz Holdings also intends to offer concurrently approximately $250,000,000 aggregate principal amount of convertible senior notes due June 1, 2014 in an underwritten registered public offering. In connection with this offering, Hertz Holdings intends to grant the underwriters a 30-day option to purchase up to an additional $37,500,000 aggregate principal amount of convertible senior notes. The convertible senior notes will be convertible, under certain circumstances, into cash, shares of Hertz Holdings common stock, or a combination of cash and shares, at the option of Hertz Holdings. The offering price, interest rate, conversion price and other terms of the convertible senior notes will be determined by Hertz Holdings and the underwriters.

The closing of the convertible notes offering and underwritten offering of common stock will not be contingent on each other.

Hertz Holdings intends to use the proceeds from the offerings to increase its liquidity and for general corporate purposes, including the repayment of consolidated debt.

J.P. Morgan Securities Inc., Goldman, Sachs & Co., Merrill Lynch & Co. and Barclays Capital Inc. are acting as joint book-running managers for the offerings.

Related Categories

Corporate News
Equity Offerings

Stocks Mentioned

Related Entities

• JPMorgan
• Merrill Lynch
• The Carlyle Group
• Barclays

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