Hertz Strengthens Financial Foundation Through Completion of Amended Credit Facilities

Rhea-AI Summary

Hertz (NASDAQ: HTZ) has successfully extended several key credit facilities, strengthening its financial foundation. The company amended its First Lien Credit Agreement, extending $1.665 billion of commitments under the $2.0 billion revolving credit facility from June 2026 to March 2028. Additionally, Hertz extended its HVF III U.S. Vehicle Variable Funding Notes to May 2027, with available principal amounts of $3.640 billion until April 2026, reducing to $2.860 billion thereafter. The company also amended its European ABS platform, extending €1.160 billion of Class A notes to April 2027.

These extensions support Hertz's strategic plan focused on disciplined fleet management, revenue optimization, and cost control, ensuring sufficient capital for strategic needs and vehicle fleet management.

Positive

• Extended $1.665B revolving credit facility commitments by almost 2 years to March 2028
• Secured extension of HVF III U.S. Vehicle Variable Funding Notes worth $2.86B until May 2027
• Extended European ABS facility of €1.16B to April 2027
• Enhanced financial flexibility and strategic capital access for fleet management

Negative

• Reduction in revolving credit facility from $2.0B to $1.665B after June 2026
• Decrease in HVF III maximum principal amount from $3.64B to $2.86B after April 2026

News Market Reaction

+3.27%

1 alert

+3.27% News Effect

On the day this news was published, HTZ gained 3.27%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Extends $1.665 Billion of Commitments Under Revolving Credit Facility, $2.860 Billion of Commitments Under HVF III U.S. Vehicle Variable Funding Notes, and €1.160 Billion Under European ABS

ESTERO, Fla., May 9, 2025 /PRNewswire/ -- Hertz Global Holdings, Inc. (NASDAQ: HTZ) (the "Company") announced today the successful extension of its First Lien RCF, HVF III U.S. Vehicle Variable Funding Notes, and European ABS strengthening the Company's financial foundation and enhancing strategic flexibility. With each of these extensions, the Company is well positioned to continue executing its strategic plan anchored on disciplined fleet management, revenue optimization, and rigorous cost control. These extensions ensure that the Company has access to sufficient capital to support its strategic needs and vehicle fleet, including retaining the ability to supplement its fleet funding needs in the future.

"Each of these extensions mark another step forward in our transformation as they afford us additional financial strength and flexibility to execute our plan," said Gil West, Hertz CEO. "They are a testament to the progress we're making and reflect the confidence our lenders have in our ability to transform the company and achieve our long- term goals."

In summary, Hertz:

• Amended its First Lien Credit Agreement governing the revolving credit facility to provide for the extension of the maturity date of approximately $1.665 billion of commitments under the existing $2.0 billion revolving credit facility from June 30, 2026, to March 31, 2028. The Company will have access to up to $2.0 billion under its revolving credit facility until June 30, 2026, and thereafter the aggregate amount of commitments under its revolving credit facility will be $1.665 billion until March 31, 2028.
• Amended its HVF III U.S. Vehicle Variable Funding Notes to extend the commitment termination date for such notes by one year to May 7, 2027. The Class A maximum principal amount available will be $3.640 billion until April 10, 2026, and thereafter will be $2.860 billion until May 7, 2027.
• Amended its European ABS securitization platform for financing activities relating to affiliates' vehicle fleets in Europe to extend the maturity date of €1.160 billion of Class A notes in the facility to April 30, 2027. The aggregate amount of Class A note commitments under the European ABS facility remaining until March 31, 2026, is €1.289 billion.

For additional details, please refer to the Company's Form 8-K filing with the U.S. Securities and Exchange Commission.

ABOUT HERTZ

Hertz Global Holdings Inc. is one of the world's leading car rental and mobility solutions providers. Its subsidiaries and licensees operate the Hertz, Dollar, Thrifty and Firefly vehicle rental brands with more than 11,000 rental locations in 160 countries around the globe, as well as the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the US, and the Hertz 24/7 car sharing business in Europe. For more information about Hertz, visit www.hertz.com.

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, and our sources of liquidity. 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 market conditions and those in our risk factors that we identify in our most recent annual report on Form 10-K for the year ended December 31, 2024, as filed with the U.S. Securities and Exchange Commission on February 18, 2025, and any updates thereto in the Company's quarterly reports on Form 10-Q and current reports on Form 8-K. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and we undertake no obligation to update this information.

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SOURCE Hertz Global Holdings, Inc.

FAQ

What credit facilities did Hertz (HTZ) extend in May 2025?

Hertz extended three major credit facilities: $1.665B in revolving credit facility commitments to March 2028, $2.86B in HVF III U.S. Vehicle Variable Funding Notes to May 2027, and €1.16B in European ABS to April 2027.

How long did Hertz extend its revolving credit facility?

Hertz extended $1.665B of its revolving credit facility commitments from June 30, 2026, to March 31, 2028.

What happens to Hertz's HVF III funding after April 2026?

After April 10, 2026, the maximum principal amount available under HVF III will decrease from $3.64B to $2.86B until May 7, 2027.

What is the purpose of Hertz's credit facility extensions?

The extensions strengthen Hertz's financial foundation, enhance strategic flexibility, and ensure sufficient capital access for strategic needs and vehicle fleet management.

How much was extended in Hertz's European ABS facility?

Hertz extended €1.16B of Class A notes in its European ABS facility to April 30, 2027.