PE backers see $1bn return on Hertz

Clayton, Dubilier & Rice, The Carlyle Group and Merrill Lynch Private Equity reclaim almost half of their original equity investment in the rental car company via a debt-financing commitment.

Rental-car company Hertz, which was purchased in a $14 billion (€11 billion) leveraged buyout by three private equity firms six months ago, has received a $1 billion debt-financing commitment from six banks to fund its shareholder dividend, a regulatory filing shows.

Clayton, Dubilier & Rice, The Carlyle Group and Merrill Lynch Private Equity bought the company from Ford Motor Co.

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