Hertz is marketing its third bond offering backed by fleet leases.
The $426 million Hertz Fleet Lease Funding LP Series 2013-3 consists of four classes of floating-rate notes with a final maturity of 2027, according to a presale report issued by Moody’s Investors Service.
Moody’s has assigned a preliminary Aaa’ rating to a $368.9 million tranche that benefits from subordination of 13.4% and a reserve fund of 0.7% for total hard credit enhancement of 14.1%.
Barclays Capital and J.P. Morgan are the lead underwriters.
Among the deal’s strengths is the fact that a sizeable portion of pool, or 51%, is rated by Moody’s; the relatively high diversity of industries in the pool of leases, and the good historical performance of the pool.
The deal’s weaknesses include the relatively high lessee and geographical concentrations. The top state, Texas, accounts for 18.3% of the pool.
Also, the transaction has a revolving period of one year and its composition could change during this time.
The Series 2013-3 follows close on the heels of two deals Hertz brought to market in October totaling $850 million.