Hertz Global Holdings last week said its subsidiary Hertz Vehicle Financing completed a $2.14 billion issuance of Series 2009-1 variable funding rental car asset-backed notes due January 2012. The notes are rated Aa1 by Moody’s, have an advance rate of about 67 percent and a margin of 2.5 percent above the applicable floating rate index.
“Completion of this VFN facility, and of our $990 million equity and convertible debt offerings earlier this year, demonstrates our ability to efficiently finance the business in difficult market conditions,” said Hertz chairman and CEO. “We are very pleased with the results of our refinancing. The deal was over-subscribed allowing us to raise $2.14 billion, which exceeded our original target of $1.5 billion. In addition, the majority of existing lenders recommitted, some increasing their participation, and we attracted new money. We believe the strong support for this facility demonstrates our solid financial condition, our ability to efficiently finance the business in difficult macro conditions, and the high quality of Hertz’ rental fleet. We are confident of our ability to refinance the remainder of our debt requirement through 2010.”
Hertz Global Holdings is the parent company of Hertz Equipment Rental Corp., No. 4 on the RER 100, as well as Hertz Rental Corp.