Loan & DebtJun 29, 2026, 04:32 PM
Hertz Corp. Issues $350M 6.75% Exchangeable Senior Notes Due 2030
AI Summary
Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., completed an offering of $350 million aggregate principal amount of 6.75% Exchangeable Senior First-Lien Secured PIK Notes due 2030. These notes will bear interest semi-annually, with a portion paid in cash and a portion as PIK interest, and are exchangeable into common stock, cash, or a combination. Concurrently, Hertz Global Holdings entered into a share lending agreement with J.P. Morgan Securities LLC to lend 37,037,037 shares of common stock, likely to facilitate the notes offering.
Key Highlights
- Hertz Corp. issued $350 million in 6.75% Exchangeable Senior First-Lien Secured PIK Notes due 2030.
- Initial purchasers have an option to buy an additional $50 million aggregate principal amount of notes.
- Notes bear 6.75% annual interest, paid semi-annually (3.375% cash, 3.375% PIK).
- Initial exchange rate is 279.5248 shares of common stock per $1,000 principal, equivalent to $3.58 per share.
- The initial exchange price represents a 32.5% premium to the concurrent Borrowed Shares offering.
- Aggregate share cap for exchange is 63,457,320 shares of common stock.
- Hertz Global Holdings lent 37,037,037 shares of common stock to J.P. Morgan Securities LLC.
Price Impact
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