UPDATE: Hertz Rental Car Sells Upsized $1.2 Billion ABS Deal

Hertz Rental Car sold an upsized $1.2 billion bond deal Friday, according to a person familiar with the matter.

The deal has two classes, $500 million of A1 class notes that sold at a yield of 4.30%, and $700 million of A2 class that sold at a yield of 5.35%. The issue is expected to settle on Oct. 22.

Hertz had increased the size of its deal from $500 million announced on Wednesday, based on investor demand.

The deal isn't eligible for funding under a Federal Reserve program set up to boost the securitization market. Under the Term Asset-Backed Securities Loan Facility, or TALF, investors can get non-recourse loans at attractive rates from the central bank to buy newly created asset-backed bonds.

Joint leads on the deal are Barclays Capital, Bank of America, BNP Paribas, Calyon and RBS.

Year-to-date issuance of asset-backed securities stands at $119.78 billion, according to a note from Deutsche Bank. Of this, auto-loan-backed deals account for $47.89 billion, or 40%, followed by credit-card loan-backed deals worth $41.56 billion, or 34.7%.

The bulk of these deals are eligible for funding under TALF.

-By Prabha Natarajan, Dow Jones Newswires; 212-416-2468; [e-mail]

(Anusha Shrivastava contributed to this article.)