Hertz downsizes synthetic letter of credit facility, reworks pricing

By Sara Rosenberg

New York, March 1 - Hertz Corp. downsized its seven-year synthetic letter of credit facility (Ba1/BB) to $200 million from $250 million and updated pricing on the tranche as well as on its $1.35 billion seven-year covenant-light term loan B (Ba1/BB), according to sources.

Pricing on the debt is now Libor plus 275 basis points, down from Libor plus 300 bps, with a 1% Libor floor, down from 1.25%, sources said.

The original issue discount on the synthetic letter of credit facility widened to 97½ from 991/2, while the discount on the term loan was left unchanged at 991/2.

As before, there is 101 soft call protection for one year.

The company's $3.35 billion credit facility, down from $3.4 billion, also includes a $1.8 billion ABL revolver.

Recommitments were due at 5 p.m. ET on Tuesday.

Deutsche Bank Securities Inc., Wells Fargo, Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Agricole and J.P. Morgan Securities LLC are the bookrunners on the deal.

Proceeds will be used to refinance existing debt.

Hertz is a Park Ridge, N.J.-based auto and equipment rental company.

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