UPDATE: Hertz Rental Car Sells Upsized $1.2 Billion ABS Deal
October 16 2009 - 2:59PM
Dow Jones News
Hertz Rental Car sold an upsized $1.2 billion bond deal Friday,
according to a person familiar with the matter.
The deal has two classes, $500 million of A1 class notes that
sold at a yield of 4.30%, and $700 million of A2 class that sold at
a yield of 5.35%. The issue is expected to settle on Oct. 22.
Hertz had increased the size of its deal from $500 million
announced on Wednesday, based on investor demand.
The deal isn't eligible for funding under a Federal Reserve
program set up to boost the securitization market. Under the Term
Asset-Backed Securities Loan Facility, or TALF, investors can get
non-recourse loans at attractive rates from the central bank to buy
newly created asset-backed bonds.
Joint leads on the deal are Barclays Capital, Bank of America,
BNP Paribas, Calyon and RBS.
Year-to-date issuance of asset-backed securities stands at
$119.78 billion, according to a note from Deutsche Bank. Of this,
auto-loan-backed deals account for $47.89 billion, or 40%, followed
by credit-card loan-backed deals worth $41.56 billion, or
34.7%.
The bulk of these deals are eligible for funding under TALF.
-By Prabha Natarajan, Dow Jones Newswires; 212-416-2468;
prabha.natarajan@dowjones.com
(Anusha Shrivastava contributed to this article.)