Hertz Corp. is marketing a $230 million auto rental fleet securitization, according to Fitch Ratings.
Bank of America Merrill Lynch is the lead arranger.
Hertz Vehicle Financing II LP, Series 2015-2 will issue four tranches of notes totaling $212.09 million with a final maturity of September 2018; the Series 2015-3 will issue four tranches of notes totaling $318.13 million with a final maturity of September 2020. The senior tranches of each series benefit from credit enhancement of at least 36.43% and are rated ‘AAA’ by Fitch Ratings.
The collateral securing each series’ notes consists of a revolving pool of vehicles leased by Hertz, Dollar Thrifty Automotive Group, or permitted affiliates, under a master lease and servicing agreement with Hertz Vehicle Financing. Hertz, which is not rated publicly by Fitch, is the servicer, primary lessee, guarantor, nominee-servicer and administrator.
Among the key ratings drivers for Fitch is the diversity of the vehicle fleet, which includes a mix of segments, makes, models and geographic concentrations.
In addition, the credit enhancement for the senior, class A notes is dynamic, calculated based on specific fleet mix concentrations. It reaches a maximum of 39.79% for each series of the collateral, down to 15.75% for the class D notes.
