Hertz Announces Upsize and Pricing of $1 Billion Offerings

Core Viewpoint - Hertz Global Holdings, Inc. announced the sale of $750 million of First Lien Senior Secured Notes and $250 million of Exchangeable Senior Second-Lien Secured PIK Notes to improve liquidity and pay down a portion of its revolving credit facility [9][10]. Group 1: Notes and Terms - The First Lien Notes will bear interest at a rate of 12.625% per annum, maturing on July 15, 2029, with interest payable semi-annually starting January 15, 2025 [11]. - The Exchangeable Notes will bear PIK interest at a rate of 8.000% per year, maturing on July 15, 2029, with interest payable semi-annually starting January 15, 2025 [12]. - The initial exchange rate for the Exchangeable Notes is set at 150.9388 shares of Common Stock per $1,000 principal amount, representing an initial exchange price of approximately $6.6252 per share, which is a premium of about 89% to the closing price of $3.51 on June 20, 2024 [13]. Group 2: Corporate Structure and Guarantees - The Notes are expected to be guaranteed by Rental Car Intermediate Holdings, LLC, Hertz Corp.'s direct parent company, and existing domestic subsidiaries that guarantee indebtedness under Hertz Corp.'s first lien credit facilities [2]. - The First Lien Notes and related guarantees are expected to be secured on a first-lien basis by the same assets that secure indebtedness under Hertz Corp.'s first lien credit facilities, making them effectively pari passu with that indebtedness [2]. - The Exchangeable Notes and related guarantees are expected to be secured on a second-lien basis by the same collateral, making them effectively junior to the First Lien Notes [3]. Group 3: Offering Details - The offerings are private placements exempt from the registration requirements of the Securities Act, targeting qualified institutional buyers and non-U.S. persons [4]. - The expected closing date for the offerings is around June 28, 2024, subject to customary closing conditions [9].