CLO issuance is already 55 percent above last year's exceptionally strong pace. With new paper coming to market and a frenzy of refinancing and resetting activity, there is no denying that CLOs are hot. Read on to learn more.
The rental car giant is issuing approximately $213 million each of notes maturing in July 2021 and July 2023 from its revolving master trust, Hertz Vehicle Financing II LP, according to rating agency presale reports.
The 10-year, fixed-rate term of the $1.75 billion interest-only loan may raise some eyebrows, though the owners still have "implied equity" of $1.7 billion in the 2.2 million square foot property, per Moody's Investors Service.
Like the sponsor's February transaction, this one is backed by midsize and larger business jets, a volatile asset class; it amortizes more slowly and has looser restrictions on extending the terms of leases and loans.
The $100 million Series 2018-1 notes will rank on an equal basis with the $900 million of notes Coinstar issued from the same master trust in May 2017, all are collateralized by nearly 20,000 coin-counting kiosks located in major retail stores.