Hertz Global Holdings Prices $1.235 Billion Senior Secured Second Priority Notes
Hertz Global Holdings, Inc. (NYSE: HTZ) revealed Thursday that its subsidiaries have priced $610.0 million aggregate principal amount of 7.50% senior secured second priority notes due 2022 and $625.0 million aggregate principal amount of 7.75% senior secured second priority notes due 2024. According to the company, the notes are issued in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended.
Hertz Global said that each series of Notes would pay interest semi-annually in arrears. The company expects the closing of the offering to happen on or about June 9, subject to customary closing conditions.
The company indicated that the gross proceeds plus an amount related to interest that would accrue on the Notes through a specified date would be deposited into an escrow account. Following the release of proceeds from escrow upon satisfaction of the escrow conditions, the net proceeds are planned to be used to finance the proposed separation of its global equipment rental business and pay fees and other transaction expenses in connection with the Spin-Off transactions.
The stock traded 0.77 percent down on Thursday.
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