Hertz notes drop as Donlen purchase agreement reached; AMC eyed in theater space

By James McCandless

San Antonio, Nov. 30 – Kicking off a new week in the distressed debt market, the focus returned to travel and entertainment tranches.

Hertz Global Holdings, Inc.’s notes dropped after the company reached an agreement to sell the assets of a subsidiary.

The 6¼% senior notes due 2022 fell 4 points to close at 43 bid. The 5½% senior notes due 2024 declined by 4½ points to close at 43½ bid.

On Monday morning, the Estero, Fla.-based car rental company announced that it had entered into an agreement to sell substantially all of the assets of its wholly owned subsidiary, Donlen Corp., to Athene Holding Ltd.

The deal was made for an anticipated cash payment of $825 million, subject to adjustments for fleet equity, working capital and assumed debt.

Under those assumptions, Hertz anticipates a purchase price at closing of at least $875 million.

Meanwhile, AMC Entertainment Holdings, Inc.’s issues varied after theaters reported dismal weekend box office results.

The 5 7/8% senior subordinated notes due 2026 rose ¾ point to close at 18¾ bid. The 5¾% senior subordinated notes due 2025 shaved off ¼ point to close at 17¾ bid.

The Leawood, Kan.-based movie theater chain’s structure was under pressure after the release of the holiday weekend’s box office results.

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