Hertz Global Holdings Inc.’s $2.6 billion purchase of Dollar Thrifty Automotive Group Inc. will increase total debt by as much as 28 percent and delay the junk-rated company’s long-sought ascent to investment grade.

Hertz obtained $1.95 billion in financing to support its buyout and will assume $1.6 billion in Dollar Thrifty’s obligations. Park Ridge, New Jersey-based Hertz’s credit-default swaps, which rise as confidence in a borrower’s creditworthiness diminishes, increased 6.6 basis points yesterday, according to data provider CMA, which is owned by McGraw-Hill Cos.

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.