Sign in to follow this  
Followers 0

Ford Likely To Get $10 Billion for Hertz

2 posts in this topic

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

Your content will need to be approved by a moderator

You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   You have pasted content with formatting.   Remove formatting

  Only 75 emoticons maximum are allowed.

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

×   Your previous content has been restored.   Clear editor

Sign in to follow this  
Followers 0

  • Who's Online (See full list)

    There are no registered users currently online

  • Who's Chatting

    There are no users currently in the chat room