Hertz Announces Pricing of Approximately $750 Million Term Asset-Backed Notes
SOURCE: The Hertz Corporation PARK RIDGE, NJ–(Marketwire – July 19, 2010) – Hertz Global Holdings, Inc. (the “Company”) ( NYSE : HTZ ) announced today that its subsidiary Hertz Vehicle Financing LLC (“HVF”), a special purpose limited liability company of which The Hertz Corporation (“Hertz”), a wholly-owned subsidiary of the Company, is the sole member, priced approximately $750 million in aggregate principal amount of 3 year, 5 year and 7 year Series 2010-1 Rental Car Asset Backed Notes, Class A (the “Class A Notes”) and Class B (the “Class B Notes,” and together with the Class A Notes, the “Notes”), rated “Aaa” and “Baa2” by Moody’s, respectively. The Class B Notes are subordinated to the Class A Notes. The $225 million of 3 year Class A Notes carry a 2.60% coupon (2.62% yield), the $34.56 million of 3 year Class B Notes carry a 5.02% coupon (5.07% yield), the $325 million of 5 year Class A Notes carry a 3.74% coupon (3.78% yield), the $49.92 million of 5 year Class B Notes carry a 5.70% coupon (5.78% yield), the $100 million of 7 year Class A Notes carry a 4.73% coupon (4.78% yield), and the $15.36 million of 7 year Class B Notes carry a 6.44% coupon (6.53% yield). The 3 year notes, 5 year notes and 7 year notes have expected final maturities in 2014, 2016 and 2018, respectively. The Notes are to be sold only to qualified institutional buyers in an offering exempt from registration pursuant to Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”), and to investors outside the United States pursuant to Regulation S under the Securities Act. The net proceeds of the offering will be used, to the extent permitted, to purchase vehicles under the ABS program of HVF, to pay other ABS indebtedness or distributed to The Hertz Corporation and used for general purposes. The offering is expected to close on July 22, 2010 subject to customary closing conditions.
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