Hertz notes gain on DIP financing news; GTT Communications improves on sale agreement

By James McCandless

San Antonio, Oct. 16 – Travel and telecom names saw continued attention in the distressed debt space to end the week.

Hertz Global Holdings, Inc.’s notes gained after news broke that the company received commitments for debtor-in-possession financing.

The 6¼% senior notes due 2022 grabbed 1¾ points to close at 44¼ bid. The 5½% senior notes due 2024 rose 1 point to close at 44¼ bid.

Before the markets opened on Friday, news broke that the Estero, Fla.-based car rental company secured commitments for $1.65 billion of DIP financing and has filed a motion for approval of the financing in bankruptcy court, Prospect News reported.

The company’s prepetition first-lien lenders are providing the financing, which is expected to be structured as a delayed-draw term loan debtor facility.

Under the terms of the deal, up to $1 billion can be used to provide equity for vehicle acquisitions in the United States and Canada while another $800 million can be used for working capital and general corporate purposes.

Meanwhile, GTT Communications, Inc.’s 7 7/8% senior notes due 2024 reached up ¾ point to close at 52¼ bid.

On Friday morning, the McLean, Va.-based cloud networking services provider announced that it had agreed to sell its infrastructure division to I Squared Capital for $2.15 billion.

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