Hertz Taps Rental-Car ABS Market for First Time Since Bankruptcy

Hertz Corp. is tapping the asset-backed securities market this week with its first full-term rental-car securitization since November 2019, part of its emergence from Chapter 11 protection.

Proceeds from its inaugural post-bankruptcy ABS will be used to finance the purchase of new vehicles to be leased to Hertz under a so-called master lease agreement. It will also be used to refinance both its original pre-bankruptcy legacy fleet-financing facility, as well as a $4 billion interim facility established last November with Athene USA Corp., an affiliate of Apollo Capital Management Inc., as a stepping stone toward an ABS transaction.

The ...