Hertz Global Holdings, Inc. (NASDAQ: HTZ) has announced its plan to offer an additional $500 million in aggregate principal amount of 12.625% first lien senior secured notes due 2029. This offering is to be conducted in a private exempt offering and is subject to market and other conditions.
Upon completion of this offering, Hertz Corporation, a wholly-owned indirect subsidiary of Hertz Global Holdings, Inc., will have $1.25 billion in aggregate principal amount of 12.625% first lien senior secured notes due 2029 outstanding. The net proceeds from this offering are intended to be used to repay outstanding borrowings under Hertz Corporation's revolving credit facility and to pay consent fees and other expenses associated with concurrent consent solicitations to amend the terms of the indentures governing the notes and the company's 8.000% exchangeable senior second-lien PIK notes due 2029.
The notes will be guaranteed by the company, Rental Car Intermediate Holdings, LLC, Hertz Corporation’s direct parent company, and each of Hertz Corporation’s existing domestic subsidiaries and future restricted subsidiaries that guarantee indebtedness under Hertz Corporation’s first lien credit facilities or certain other indebtedness for borrowed money.
It is important to note that the notes and the guarantees of the notes are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.
Hertz Global Holdings, Inc. operates the Hertz, Dollar, and Thrifty vehicle rental brands worldwide and is one of the largest vehicle rental companies globally. Additionally, the Hertz Corporation owns and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. As a result of these announcements, the company's shares have moved 3.6% on the market, and are now trading at a price of $4.6. For the full picture, make sure to review Hertz Global's 8-K report.
