Hertz prices $350M exchangeable senior secured notes due 2030

Hertz Global Holdings, Inc. (NASDAQ: HTZ) announced that its subsidiary, The Hertz Corporation, has priced an offering of $350 million in aggregate principal amount of 6.75% Exchangeable Senior First-Lien Secured PIK Notes due 2030, upsized from a previously announced $300 million offering.

The notes will be issued in a private offering to qualified institutional buyers under Rule 144A and are expected to close on or about June 29, 2026, subject to customary closing conditions. Hertz Corp. also granted initial purchasers an option to purchase up to an additional $50 million in notes within 13 days of the initial issuance date.

Net proceeds are estimated at approximately $339.5 million, or approximately $388.0 million if the additional purchase option is exercised in full. Hertz Corp. intends to use the proceeds to repay outstanding borrowings under its revolving credit facility and for general corporate purposes.

The notes carry an interest rate of 6.75%, split equally between cash payments and payment-in-kind interest at 3.375% each, paid semi-annually beginning January 1, 2027. The notes mature on July 1, 2030.

The initial exchange rate is set at 279.5248 shares of common stock per $1,000 principal amount, representing an initial exchange price of approximately $3.58 per share, a 32.5% premium over the $2.70 per share price in a concurrent registered public offering of 37,037,037 borrowed shares of common stock.

Hertz Corp. may not redeem the notes before January 6, 2029. After that date, redemption is permitted at 100% of capitalized principal plus accrued interest if the stock price reaches at least 130% of the exchange price for specified periods.

The notes are expected to be secured on a first-lien basis by the same assets securing Hertz Corp.'s existing first-lien credit facilities and notes, ranking effectively at parity with that existing debt. The concurrent borrowed shares offering is contingent on the closing of the notes offering, though the notes offering is not contingent on the borrowed shares offering closing.

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