Hertz Global Holdings Inc. announced that Hertz Vehicle Financing LLC, its indirect wholly owned special purpose subsidiary, has completed a $2.14 billion issuance of Series 2009-1 Variable Funding Rental Car Asset Backed Notes (VFN), due January 2012, with Controlled Amortization Payment Dates between November 2011 and January 2012 (the "Notes"). The Notes are rated Aa1 by Moody's, have an advance rate of approximately 67 percent and a margin of 2.5 percent above the applicable floating rate index (currently equal to 4 percent on a fixed rate basis excluding fees). The company has now completed, one year ahead of schedule, transactions affecting a majority of its U.S. fleet debt scheduled to be refinanced by the end of 2010. Additionally, Hertz has no significant corporate debt maturities prior to 2012, and has more than $1 billion of unused corporate borrowing capacity.
Mark P. Frissora, the company's chairman and CEO, said, "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. We are very pleased with the results of the 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 successfully manage the business despite difficult macro conditions and the high quality of the Hertz rental fleet. We are confident of our ability to refinance the remainder of our debt requirement through 2010."
