Bloomberg News

Hertz Said to Set Financing Mix for $1.95 Billion Buyout Loan

August 27, 2012

Hertz Global Holdings Inc. (HTZ:US) may sell about $1.45 billion in bonds and borrow as much as $500 million in loans to finance its $2.6 billion purchase of Dollar Thrifty Automotive Group Inc. (DTG:US), according to a person with knowledge of the transaction.

Hertz has obtained a $1.95 billion bridge financing commitment from Barclays Plc, Bank of America Corp. and Deutsche Bank AG, the company said in a regulatory filing (HTZ:US). The loan and the bond sale will replace the bridge debt once the acquisition has obtained regulatory approval, said the person, who asked not to be identified because the terms are private

The loan may add to Park Ridge, New Jersey-based Hertz’s $1.4 billion debt due March 2018, said the person. The piece pays interest at 2.75 percentage points more than the London interbank offered rate and will have 1 percent floor, according to data compiled by Bloomberg.

“Given where we see the high yield market, the majority of the financing we see being done in bonds,” Elyse Douglas, executive vice president and chief financial office of Hertz said today in a conference call with analysts.

Hertz is rated B+, the fourth level of speculative grade, by Standard & Poor’s. Libor is rate at which banks say they can borrow in dollars from each other.

To contact the reporter on this story: David Holley in New York at

To contact the editor responsible for this story: Shannon D. Harrington at

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Companies Mentioned

  • HTZ
    (Hertz Global Holdings Inc)
    • $21.92 USD
    • 0.25
    • 1.14%
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