Hertz: Refinancing of Senior Secured Credit Facilities Wrapped Up
Hertz Global Holdings recently announced its wholly owned subsidiaries, Hertz Corp. and Hertz Equipment Rental Corp., have completed the refinancing of their existing senior secured credit facilities. They have come under a new $1.8 billion asset-based revolving credit facility and a new $1.6 billion senior secured term loan and letter of credit facility.
Hertz indicated the senior ABL facility will mature in 2016 and the senior term loan facility will mature in 2018.
The company explained that the senior credit facilities are secured and guaranteed on a basis similar to the existing senior secured credit facilities they replace. Hertz said borrowings under the senior credit facilities were used to repay outstanding debt under the existing senior secured credit facilities.
Executives also noted that borrowings and letters of credit will be available under the senior credit facilities to support ongoing business requirements and general corporate purposes.
“The closing of our senior credit facilities is a significant further step in our strategy to refinance our corporate debt and extend our maturity profile at attractive rates and terms,” stated Mark Frissora, Hertz’s chairman and chief executive officer.
“Combined with the closing of the $500 million of senior unsecured notes that we priced on March 7 and the related redemption of higher coupon notes, greater than 75 percent of our funded corporate debt will have maturity dates in 2018 or beyond,” Frissora continued.
“In addition, the maturity date of our senior ABL facility, which serves as our primary corporate liquidity line, has been extended into 2016,” he went on to say. “We believe these refinancings solidify a strong, flexible and scalable capital structure upon which we can execute our long term growth initiatives.”