Hertz Corp. Prices Upsized $350M Notes Offering
Hertz Corporation, a wholly-owned indirect subsidiary of Hertz Global Holdings, Inc., priced an upsized offering of $350 million aggregate principal amount of 6.75% Exchangeable Senior First-Lien Secured PIK Notes due 2030, with an option for initial purchasers to buy an additional $50 million. The estimated net proceeds of $339.5 million (or $388.0 million if the option is exercised) will be used to repay outstanding borrowings under its revolving credit facility and for general corporate purposes. Concurrently, Hertz Global Holdings priced an offering of 37,037,037 shares of its common stock at $2.70 per share, which will be loaned to J.P. Morgan Securities LLC to facilitate hedging for investors in the Notes, with the company receiving only a nominal lending fee.
Key Highlights
- Hertz Corp. priced $350 million of 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.
- The Notes offering size was upsized from the previously announced $300 million.
- Estimated net proceeds from Notes are $339.5 million, or $388.0 million if the option is exercised.
- Proceeds will be used to repay revolving credit facility borrowings and for general corporate purposes.
- Hertz Global Holdings priced an offering of 37,037,037 common shares at $2.70 per share.
- Common shares are loaned to J.P. Morgan Securities LLC for hedging; company receives no proceeds.
- Initial exchange price of Notes is $3.58 per share, a 32.5% premium to the common stock offering price.
Price Impact
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