Hertz Announces Consent Solicitations to Amend its 12.625% First Lien Senior Secured Notes Due 2029 and 8.000% Exchangeable Senior Second-Lien PIK Notes due 2029
Rhea-AI Summary
Hertz (NASDAQ: HTZ) announced that its subsidiary, The Hertz , is seeking consent from holders of its 12.625% First Lien Senior Secured Notes due 2029 and 8.000% Exchangeable Senior Second-Lien PIK Notes due 2029 to amend certain provisions of the governing indentures.
The consent solicitations will expire on December 12, 2024, at 5:00 p.m., New York City time. The process is concurrent with a proposed offering of an additional $500 million in First Lien Notes. The company needs to obtain consent from at least 60% of holders for each note series.
Consent fees of $11.25 per $1,000 for First Lien Notes and $17.50 per $1,000 for Exchangeable Notes will be paid to holders who validly deliver consents. The company has already received non-binding indications from certain holders exceeding the required 60% threshold.
Positive
- Received non-binding indications from holders exceeding the 60% threshold required for approval
- Planning to raise additional $500 million through First Lien Notes offering
Negative
- Additional debt issuance of $500 million could increase company's debt burden
- Company needs to pay consent fees to noteholders, increasing expenses
News Market Reaction – HTZ
In the trading session that priced this news, HTZ gained 3.60%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The consent solicitations for each series of Existing Notes (collectively, the "Consent Solicitations" and, with respect to each series, a "Consent Solicitation") are being made solely on the terms and subject to the conditions set forth in the consent solicitation statement dated December 5, 2024 (the "Consent Solicitation Statement"). Holders of the Existing Notes should carefully read the Consent Solicitation Statement before any decision is made with respect to the applicable Consent Solicitation.
The Consent Solicitations will expire at 5:00 p.m., New York City time, on December 12, 2024, unless extended or terminated with respect to any Consent Solicitation by the Company (the "Expiration Date").
The Consent Solicitations are being made concurrently with, and are conditioned upon, among other things, the consummation of the proposed offering (the "Proposed Offering") of an additional
The Company has received non-binding indications of intent from certain holders (such holders, the "Initial Consenting Holders") of the Existing Notes, pursuant to which such Initial Consenting Holders are expected to deliver consents in an amount in excess of the
On the terms and subject to the conditions set forth in the Consent Solicitation Statement, if the Company receives the applicable Requisite Consents and a supplemental indenture effecting the Proposed Amendments is executed with respect to a series of Existing Notes, the Company will promptly pay the applicable consent fee set forth below to the holders as of the Record Date of such Existing Notes that have validly delivered and not validly withdrawn Consents.
First Lien Notes Consent Fee: | |
Exchangeable Notes Consent Fee: |
(1) | The consent fee payable in respect of the Exchangeable Notes will be calculated using the Initial Principal Amount (as such term is defined in the Exchangeable Notes Indenture) represented by validly delivered and not validly revoked Consents. | ||||||||||||
This press release is not a solicitation of consents with respect to the Existing Notes and does not set forth all of the terms and conditions of the Consent Solicitations.
This press release is not an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the Additional First Lien Notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful.
Any inquiries regarding the Consent Solicitations may be directed to D.F. King & Co., Inc., the Information, Tabulation and Paying Agent for the Consent Solicitations, at hertz@dfking.com or (212) 269-5550 (collect) or (800) 967-5074 (toll free), or to J.P. Morgan Securities LLC, the Solicitation Agent for the Consent Solicitations, at (212) 834-4087 (collect) or (800) 834-4666 (toll free).
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the federal securities laws. Words such as "expect," "will" and "intend" and similar expressions identify forward-looking statements, which include but are not limited to statements related to our positioning, strategy, vision, forward looking investments, conditions in the travel industry, our financial and operational condition, our sources of liquidity, the consent solicitations and the proposed offering. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including risks and uncertainties related to completion of the offering on the anticipated terms or at all, market conditions (including market interest rates) and the satisfaction of customary closing conditions related to the offering, unanticipated uses of capital and those in our risk factors that we identify in the offering memorandum for this offering and our most recent annual report on Form 10-K for the year ended December 31, 2023, as filed with the
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