Deutsche Bank, Lehman Brothers and Merrill Lynch hit the market last week with the $3.85 billion financing backing the leveraged buyout of Hertz by The Carlyle Group, Clayton Dubilier & Rice and Merrill Lynch Global Private Equity. The deal consists of a $2 billion, seven-year term loan; a $1.6 billion, five-year asset-based revolver; and a $250 million synthetic letter of credit, according to a spokesman at Deutsche Bank.
Price talk on the revolver is LIBOR plus 2 1/4%, while the term loan is being talked at between 2 1/2- 3 /4%. The deal is expected to close sometime in late December, possibly around the third week of the month. Officials at Hertz could not be reached for comment. A call to Merrill Lynch was not returned. A spokesman at Lehman declined comment.