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Hertz seeks loan amendment to allow for term loan buybacks
By Sara Rosenberg
New York, March 23 - Hertz Global Holdings Inc. is looking to amend its credit facility to allow for the use of up to $500 million in cash to repurchase term loan debt through tender offers, according to a market source.
Under the amendment proposal, the company has one year to repurchase the term loan debt and can only execute four tenders during that one-year period.
There is a minimum tender size of $10 million.
In order to be able to tender for the debt, the company would have to meet a minimum liquidity test of $1 billion between cash and its revolving credit facility. Currently, the company has $1.8 billion of liquidity.
The amendment provides that revolver funds may be used for the tender.
Deutsche Bank is leading the amendment that was launched to investors on Friday.
Lenders will be paid a 5 basis points consent fee.
Responses are due this Friday.
Hertz is a Park ridge, N.J.-based car rental brand.
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