Donlen raised $500 million in corporate bond funding Monday to finance its fleet leasing operations via its financing unit, according to its owner Hertz Global Holdings.

Donlen issued the Series 2013-3 floating-rate asset-backed notes in four tiers—Class A, Class, B, Class C, and Class D—through its Hertz Fleet Leasing Funding (HFLF) subsidiary. The funding will help repay HFLF's Series 2013-1 notes and make loans to DNRS II, a special purpose subsidiary of Donlen.

The floating-rate notes carry an interest rate based on a spread to one-month LIBOR (London Interbank Offered Rate). The $461.1 million of Class A notes carry a spread of 0.55%; the $13.4 million of Class B notes carry a spread of 1.05%; the $12.9 million of Class C notes carry a spread of 1.45%; and the $12.6 million of Class D notes carry a spread of 2%.

Under the terms of the notes, Donlen may use the funding to acquire vehicles or equipment that will be leased to its customers. After December 2014, HFLF will begin repaying the notes with revenue from lease payments and the sale of vehicles and equipment.

The assumed weighted average life-to-maturity of the Class A notes, Class B notes, Class C notes, and Class D notes are expected to be 1.93 years, 2.82 years, 2.88 years, and 2.92 years respectively, according to a Hertz press release.