You can now invest in a new Australian dollar, fixed coupon, credit-linked security over The Hertz Corporation yielding a 7.00- 7.5% per annum return.
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. https://www.hertz.com/
The Hertz Corporation is a global household name which is listed on the NASDAQ (Ticker: HTZ) with a market capitalisation of USD 2.7 billion.
Investment Details:
- Issuer: C2 Specialist Investment Pty Ltd
- Coupon Rate: 7.00-7.50% per annum paid quarterly
- 4.5-year DPA (maturity 5 July 2028)
- Issue Price: $100
- ABE Code: C2HF072528
- Minimum Investment: A$10,000
- Currency: The note is denominated in AUD. All Coupons and any Final Value is delivered in Australian dollars, without exposure to the exchange rate.
Hertz Corporation Reference Asset:
- Hertz Corporation USD 5-year generic Credit Default Swap (CDS) contract
- Bloomberg Name: HTZ CDS USD SR 5Y D14
- Standard Reference Obligation: Hertz Corp USD 5% bond maturing 1 December 2029 (or equivalent successor ranked pari passu)
- Bloomberg Name: HTZ 5 12/01/29 Corp
- Bloomberg ISIN: US428040DB25
- Reference Asset Rating: S&P BB- / Moody’s NA / Fitch B
- Debt Type: Senior Unsecured
Risks
The risks listed below are not all of the risks associated with the activities of an investment in a Market Linked Product. For a comprehensive description of the risks, please refer to the Key Risks section of the Product Disclosure Statement (PDS).
Credit Risk: Defaults on the underlying security may result in a loss of principal invested and/or interest due under those bonds and the underlying CDS contracts (Credit Event). In addition, investors also bear credit risk with respect to the Issuer. If the Issuer fails to perform its obligations under the DPA (or is unable to perform its obligations for any reason), there may be an adverse impact on your investment even if no Credit Event has occurred.
This risk is mitigated by:
- the size and global reach of the underlying security;
- the use of Tier One International banking partner
Bond and CDS Market Risk: A material decline in the value of Hertz Corporation Inc’s brand in relevant market segments will erode the value of the Notes and the underlying CDS contracts.
This risk is mitigated by:
- the factors referred to under ‘Credit Risk’ above;
Liquidity risk. You may not be able to realise your investment when you want to. The Issuer Buy-Back facility is at the discretion of the Issuer. Issuer Buy-Back requests are determined at the Issuer’s discretion.
This risk is mitigated by:
- the Australian Bond Exchange will facilitate the secondary market to enhance liquidit
Disclaimer: This webpage has been prepared by ABE Distribution Pty. Ltd ACN 673 177 912 (“ABE”). ABE is a Corporate Authorised Representative number 1307088 of Novus Capital Limited ACN 006 711 995 AFSL 238168. The information contained in it is of a general nature only. It was prepared without considering your financial needs, circumstances and objectives. Before investing in a fixed-interest product with ABE, you should consider whether it is appropriate for your circumstances and review the relevant terms and conditions. This document may contain links to other third-party websites, some of which require a subscription to read. Such links are for your convenience only, and ABE does not recommend or endorse these third-party sites.. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions, or other information contained in the content. The content may contain certain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control. To the maximum extent permitted by law ABE disclaims all liability and responsibility for any direct or indirect loss or damage that you may suffer as a result of relying on anything in this content. Past performance is not an indication of future performance