Deutsche Bank this morning pulled the repricing portion of the amendment it was in the market with for Hertz Corp. It is expected, however, to still ask for the technical amendment, which will make restricted payment language consistent between the loan and bond indenture. A memo is expected to go out to investors soon.
The bank had been asking for a 25 basis points cut to LIBOR plus 2% on the approximately $2.25 billion facility. Commitments were due yesterday, but some investors were upset that after the repricing was launched, the private equity groups announced they would be taking a $1 billion dividend.
Hertz was bought by The Carlyle Group, Clayton Dubilier & Rice and Merrill Lynch Global Private Equity in the winter. Calls to Paul Siracusa, cfo of Hertz were not returned. A spokesman from Clayton, Dubilier & Rice declined comment. A Carlyle spokesman referred calls to a spokesman at Hertz, who did not return calls. Calls to a spokeswoman at Merrill Lynch were not returned.
