Investors say Hertz ABS ‘incredibly positive’ step

By Jennifer Kang
03 Dec 2020

ABS investors drew sighs of relief upon hearing that Hertz is issuing a delayed draw securitization to purchase new rental stock and prepare for new deals in 2021. The $4bn transaction benefits the bondholders as it signals that Hertz is moving towards a full recovery, sources say.

Hertz filed for Chapter 11 bankruptcy on May 22 after missing a lease payment, which caused its master trust to amortise early. After reaching an agreement with lessors, the rental car company has been selling the vehicles in its ABS trust to pay the senior bondholders.

...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial