Pricing on Hertz's $1.6 billion revolver was cut by 25 basis points last week. At launch, price talk on the five-year revolver had been LIBOR plus 2 1/4%, but was cut to LIBOR plus 2% on oversubscription. Deutsche Bank, Lehman Brothers and Merrill Lynch are leading the deal, which also consists of a seven-year, $2 billion term loan and a $250 million synthetic letter of credit. The term loan is still being talked in the LIBOR plus 2 1/2% - 2 3/4% range.
The loans back the leveraged buyout of Hertz by The Carlyle Group, Clayton Dubilier & Rice and Merrill Lynch Global Private Equity. JPMorgan and Goldman Sachs are also involved in the financing. A Hertz representative could not be reached. Officials at the banks either did not return calls or declined to comment.