Hertz Corp. plans to launch a $750 million securitization backed by its rental fleet vehicles, according to a presale report published Monday by Moody's Investors Service.
The deal, Series 2013-1, will offer investors $250 million in class A notes with an average life maturity of 3.38 years and an ‘Aaa’ rating; and $500 million of class B notes with a 5.38- year average life maturity and a ‘Baa2’ rating.
Moody’s explained in its presale report that the required amount of credit enhancement on the notes fluctuates based on the mix of vehicles in the securitized fleet. As in prior transactions, the required total enhancement must include a minimum portion which is liquid. This portion will be measured as a percentage of the outstanding note balance, rather than fleet vehicles.
