Hertz Global Holdings announced that its subsidiary, The Hertz Corporation, has priced an upsized private offering of $350 million in 6.75% Exchangeable Senior First-Lien Secured PIK Notes due 2030. The offering was increased from the previously announced size of $300 million. Net proceeds are intended to repay borrowings under its revolving credit facility and for general corporate purposes.
Key Details
- Offering Size: $350 million in aggregate principal, with an option for purchasers to buy an additional $50 million.
- Security Terms: The notes bear a 6.75% interest rate and mature on July 1, 2030. The initial exchange price is approximately $3.58 per share, a 32.5% premium over the concurrent stock offering price.
- Use of Proceeds: The company estimates net proceeds of approximately $339.5 million (or $388.0 million if the option is fully exercised), which will be used to repay revolving credit facility debt.
- Concurrent Share Offering: A related offering of 37,037,037 common shares at $2.70 per share was priced. These shares will be loaned to an underwriter to facilitate hedging activities for the note investors; Hertz will not receive proceeds from this share sale.