Loan & DebtJun 24, 2026, 07:41 AM
Hertz Corp. to Offer $300M Exchangeable Senior Secured PIK Notes
AI Summary
Hertz Global Holdings, Inc. announced that its subsidiary, The Hertz Corporation, plans to offer $300 million in Exchangeable Senior First-Lien Secured PIK Notes due 2030 in a private offering. The proceeds will be used for general corporate purposes, including debt repayment. Concurrently, Hertz Global Holdings intends to offer $100 million of common stock, which will be loaned to J.P. Morgan Securities LLC to facilitate hedging for investors in the Notes. Hertz will not receive proceeds from the common stock offering, only a nominal lending fee.
Key Highlights
- Hertz Corp. intends to offer $300 million in Exchangeable Senior First-Lien Secured PIK Notes due 2030.
- Initial purchasers have an option to buy an additional $45 million in Notes.
- Proceeds from the Notes offering will be used for general corporate purposes, including debt repayment.
- Notes will bear semi-annual interest (cash and PIK) and mature on July 1, 2030.
- Hertz Global Holdings plans to offer $100 million of common stock in a registered offering.
- The common stock will be loaned to J.P. Morgan Securities LLC to facilitate hedging for Notes investors.
- Hertz Global Holdings will not receive proceeds from the common stock offering, only a nominal lending fee.
- The Notes are secured on a first-lien basis and guaranteed by the Company and its subsidiaries.
Price Impact
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