Jump to content
Sign in to follow this  

Ford Likely To Get $10 Billion for Hertz

Recommended Posts

From TCC

Two groups of private equity firms have emerged in what should be a about a $10 billion bidding battle for Ford's Hertz rental car unit, which it is selling to raise capital. One bidder includes Bain Capital Partners LLC, Blackstone Group LP, Texas Pacific Group and Thomas H. Lee Partners LP, according to published reports and confirmed by executives familiar with the process. The second group includes Carlyle Group, Clayton, Dubilier & Rice Inc. and Merrill Lynch Global Private Equity.

If the bids don't measure up to Ford's expectations, the rental car company could pursue an initial public offering instead. In June, Hertz filed a preliminary document with the Securities and Exchange Commission for an IPO. If that came to pass, Ford would retain an interest at first, but then divest its remaining ownership interest in Hertz. Like most car rental companies, Hertz is highly leveraged. The car-rental company has about $6 billion of unsecured, medium-term and long-term debt, and about $1 billion of secured debt. It also gets to buy vehicles from Ford at favorable rates. -Jim Burt

Share this post

Link to post
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Who's Online   1 Member, 0 Anonymous, 42 Guests (See full list)

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets


  • Create New...