Hertz Global Holdings Inc. (HTZ: Quote) announced Thursday that Hertz Vehicle Financing LLC or “HVF”, a special purpose bankruptcy remote limited liability company of which The Hertz Corporation or “Hertz” or the “Company”, a wholly-owned subsidiary of Hertz Holdings, is the sole member, priced $950 million in aggregate principal amount of three year and five year Series 2013-1 Rental Car Asset Backed Notes, Class A and Class B, rated “Aaa” and “Baa2” by Moody’s, respectively.
The $282.75 million of three year Class A notes carry a 1.12% coupon, the $42.25 million of three year Class B notes carry a 1.86% coupon, the $543.75 million of five year Class A notes carry a 1.83% coupon, and the $81.25 million of five year Class B notes carry a 2.48% coupon. The three year notes and five year notes have expected final payment dates in August 2016 and August 2018, respectively. The Class B Notes are subordinated to the Class A Notes.
The company said that the net proceeds from the sale of the notes will be, (i) used to pay the purchase price of vehicles acquired by HVF pursuant to Hertz Holdings’ ABS Program, (ii) used to pay the principal amount of other ABS Program indebtedness that is then permitted or required to be paid or (iii) released to HVF to be distributed to Hertz or otherwise used by HVF for general purposes. The offering is expected to close on January 23, 2013 subject to customary closing conditions.
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by RTT Staff Writer
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