Hertz launches $700 million term loan B at Libor plus 275-300 bps

By Sara Rosenberg

New York, June 2 – Hertz Corp. launched on Thursday its $700 million term loan B with price talk of Libor plus 275 basis points to 300 bps with a 0.75% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan B has 101 soft call protection for six months, the source said.

The company’s $2.4 billion credit facility also includes a $1.7 billion revolver.

Barclays, Credit Agricole Securities (USA) Inc., Bank of America Merrill Lynch, BMO Capital Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and RBC Capital Markets LLC are the bookrunners on the deal.

Commitments are due at noon ET on June 16, the source added.

Proceeds from the term loan will be used to refinance existing debt, and the revolver will replace the company’s existing asset-based revolver due 2017 in connection with the spinoff of its equipment rental business.

Hertz is an Estero, Fla.-based car rental company.

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