Hertz Global Holdings, Inc., a leading global rental car company, has announced the pricing of $500 million in aggregate principal amount of additional 12.625% first lien senior secured notes due 2029. This offering is a further issuance of Hertz Corp.’s 12.625% first lien senior secured notes due 2029, which were issued on June 28, 2024. Upon completion of the offering, Hertz Corp. will have $1.25 billion in aggregate principal amount of 12.625% first lien senior secured notes due 2029 outstanding.
The net proceeds from the issuance of the notes will be used to repay outstanding borrowings under Hertz Corp.’s revolving credit facility and to pay the 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 issued at 107.732%, plus pre-issuance accrued interest from and including June 28, 2024. They will bear interest at a rate of 12.625% per annum payable semi-annually in cash in arrears on January 15 and July 15 of each year, beginning on January 15, 2025, and will mature on July 15, 2029.
The notes will be guaranteed by the company, Rental Car Intermediate Holdings, LLC, Hertz Corp.’s direct parent company, and each of Hertz Corp.’s existing domestic subsidiaries and future restricted subsidiaries that guarantees indebtedness under Hertz Corp.’s first lien credit facilities or certain other indebtedness for borrowed money. The notes and the related guarantees (other than the guarantee by the company) will be secured on a first-lien basis by the same assets (other than certain excluded property) that secure indebtedness under Hertz Corp.’s first lien credit facilities and therefore will be effectively pari passu with indebtedness under Hertz Corp.’s first lien credit facilities and its existing 12.625% first lien senior secured notes due 2029.
The notes and the guarantees of the notes were offered only to qualified institutional buyers and non-U.S. persons outside the United States. They have not been and will not be registered under the securities laws and may not be offered or sold in the United States absent registration or an applicable exemption.
Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar, and Thrifty vehicle rental brands internationally and is one of the largest worldwide vehicle rental companies. Additionally, the company 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. The market has reacted to these announcements by moving the company's shares 1.1% to a price of $4.65. If you want to know more, read the company's complete 8-K report here.
