In addition to the financing commitment, the transaction will include cash on hand from Dollar Thrif

Barclays, Deutsche Bank, and Bank of America Merrill Lynch will provide $1.95 billion of financing to back Hertz Global Holdings $2.3 billion purchase of  Dollar Thrifty Automotive Group , sources said. The $87.50 per share cash transaction was announced this morning.
k and k hotel george london discount rates The financing is an unsecured bridge loan priced initially at L+537.5 with a 1% LIBOR floor, rising 50 bps per quarter to an unspecified fixed-rate cap. The loan has a one-year initial maturity with an eight-year final maturity, according to an SEC filing.
In addition to the financing commitment, the transaction k and k hotel george london discount rates will include cash on hand from Dollar Thrifty and Hertz. Permanent financing is anticipated to include a mix of incremental term debt and high-yield bonds, according to the investor presentation provided today.
Hertz also announced today that it has reached an agreement to sell the Advantage k and k hotel george london discount rates business to Franchise Services of North America and Macquarie k and k hotel george london discount rates Capital.  FSNA is an experienced rental car operator with subsidiaries including, among others, U-Save, Rent-a-Wreck, Practicar, and X Press Rent-a-Car. The closing of that divestiture is conditioned upon, among other things, Hertz completing an acquisition of Dollar Thrifty.
The combined company would have enhanced leadership positions in key markets around the world, with combined June 30, 2012 LTM sales of $10.2 billion k and k hotel george london discount rates and EBITDA of roughly $1.8 billion across roughly 10,000 locations globally. The company anticipates at least $160 million of annual cost synergies from the transaction, sources said.
Hertz noted it will assume Dollar Thrifty's ABS fleet debt, and expects to be placed on negative watch, but doesn t expect a downgrade. On a corporate basis, Hertz is projecting leverage of 3.7x, and 3.4x with synergies. On a gross basis, leverage would be 4.0x, and 3.8x with synergies.
The transaction has been structured as a two-step acquisition including a cash tender offer for all outstanding shares of Dollar Thrifty common stock followed by a cash merger in which Hertz would acquire any remaining outstanding k and k hotel george london discount rates shares of Dollar Thrifty common stock. The transaction is subject to the tender of at least a majority of the shares of Dollar Thrifty common k and k hotel george london discount rates stock, as well as other customary closing conditions. The successful completion of the transaction is also subject to regulatory k and k hotel george london discount rates clearance by the Federal Trade Commission. Hertz has remained closely k and k hotel george london discount rates engaged with the FTC to secure antitrust k and k hotel george london discount rates clearance for the proposed transaction and Dollar Thrifty will fully cooperate in the process.
Hertz s $1.35 billion covenant-lite term loan was put in place in early 2011 via a a group led by Deutsche Bank. The seven-year term loan is priced at L+275, with a 1% LIBOR floor. Proceeds from the loan, which was syndicated alongside a $200 million k and k hotel george london discount rates synthetic LC and a $1.8 billion asset-based RC, were used to refinance the company's existing bank debt. –  Chris Donnelly