Medium Term Notes update is courtesy of MarketWatch. Hertz, most well known for their vehicle rental company, has closed on a private offering of $780 million medium term rental car asset backed notes. The details from Hertz’s press release, found on MarketWatch, is below.
Hertz Global Holdings, Inc.HTZ, +0.24% (“Hertz” or the “Company”) today announced that Hertz Vehicle Financing II LP (“HVF II”), a wholly owned special purpose subsidiary of the Company, successfully issued $780.0 million in aggregate principal amount of Series 2015-1 Rental Car Asset Backed Notes, Class A, Class B, and Class C (the “Series 2015-1 Notes”). The Company utilizes the HVF II securitization platform to finance its U.S. rental car fleet.
The expected maturity of the Series 2015-1 Notes is March 2020. The Series 2015-1 Notes are comprised of $622.44 million aggregate principal amount of 2.73% Rental Car Asset Backed Notes, Class A, $118.529 million aggregate principal amount of 3.52% Rental Car Asset Backed Notes, Class B, and $39.031 million aggregate principal amount of 4.35% Rental Car Asset Backed Notes, Class C. The Class B Notes are subordinated to the Class A Notes. The Class C Notes are subordinated to the Class A Notes and the Class B Notes.
The net proceeds from the sale of the Series 2015-1 Notes are expected to be used (i) to repay a portion of the outstanding principal amount of HVF II’s Series 2013-A Variable Funding Notes and HVF II’s Series 2014-A Variable Funding Notes and (ii) to make loans to Hertz Vehicle Financing LLC (“HVF”), a wholly owned special purpose subsidiary of the Company. HVF is expected to use the proceeds of any such loans to acquire or refinance vehicles to be leased to The Hertz Corporation or DTG Operations, Inc., each wholly owned subsidiaries of the Company, for use in their daily rental operations. The offering closed on April 14, 2015.
Hertz operates the Hertz, Dollar, Thrifty and Firefly car rental brands in more than 10,800 corporate and licensee locations throughout 145 countries in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. Hertz is the largest worldwide airport general use car rental company with more than 1,700 airport locations in the U.S. and more than 1,300 airport locations internationally. Product and service initiatives such as Hertz Gold Plus Rewards, NeverLost®, Carfirmations,Mobile Wi-Fi and unique vehicles offered through the Adrenaline, Dream, Green and Prestige Collections set Hertz apart from the competition. Additionally, Hertz owns the vehicle leasing and fleet management leader Donlen Corporation, operates the Hertz 24/7 hourly car rental business and sells vehicles through its Rent2Buy program. The Company also owns Hertz Equipment Rental Corporation (“HERC”), one of the largest equipment rental businesses with more than 350 locations worldwide offering a diverse line of equipment and tools for rent and sale. HERC primarily serves the construction, industrial, oil, gas, entertainment and government sectors.