Hertz Global Holdings Inc., the largest publicly traded U.S. rental-car service, will sell $500 million of senior notes due 2021 in a private offering to repay other debt.
The proceeds from the notes and a sale of 7.5 percent bonds in September will be used to redeem 10.5 percent notes due 2016 and $625 million of 8.875 percent notes due 2014, Park Ridge, New Jersey-based Hertz said today in a statement.
Standard & Poor’s rated the notes announced today CCC+, the seventh level below investment grade.
Hertz also said today it will start carrying electric vehicles from Penske Automotive Group Inc.’s Smart USA unit in New York, Washington and San Francisco. Hertz will offer 15 Smart Fortwo cars by January and more than 300 by the end of next year, Rich Broome, a Hertz spokesman, said in an e-mail.
Hertz rose 13 cents, or 1 percent, to $13.34 at 4:01 p.m. in New York Stock Exchange composite trading. The shares have gained 12 percent this year.
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