#United States #Hertz Global Holdings #Hertz Corporation #Estero #Financial Strategy

HERTZ ANNOUNCES CONSENT SOLICITATIONS TO AMEND SENIOR SECURED NOTES

Hertz Global Holdings, Inc., a prominent name in the global car rental sector, has recently taken strategic steps to bolster its financial framework ahead of upcoming due dates for its senior secured notes. As of December 5, 2024, the company has announced consent solicitations targeting both its 12.625% First Lien Senior Secured Notes and its 8.000% Exchangeable Senior Second-Lien PIK Notes, both set to mature in 2029. This proactive measure was undertaken by its wholly-owned subsidiary, The Hertz Corporation.

The process involves soliciting consents from holders of the existing notes as of December 4, 2024. Part of the proposed amendments includes altering certain terms of the existing indenture agreements that govern these financial instruments. Stakeholders are encouraged to thoroughly review the Consent Solicitation Statement, issued on the same day as the announcement, to understand the implications before making any decisions.

KEY DETAILS OF THE SOLICITATION

The consent solicitations are expected to conclude at 5:00 PM EST on December 12, 2024, unless an extension or termination occurs. Notably, the solicitations are running concurrently with a proposed offering worth $500 million of additional first lien notes. This offering is specifically designed to support the consent amendments and aims to gather strong backing from existing noteholders.

Furthermore, for the consent amendments to be approved, Hertz must secure agreement from at least 60% of the outstanding principal amount of the notes. The company has already received initial indications of consent from some noteholders, surpassing the required thresholds for both the first lien and exchangeable notes.

FINANCIAL INCENTIVES FOR CONSENT HOLDERS

To sweeten the deal, Hertz is offering financial incentives to those who provide valid consent. Holders of First Lien Notes will receive a consent fee of $11.25 for every $1,000 of principal, while holders of the Exchangeable Notes will get $17.50 per $1,000. These incentives underscore Hertz's commitment to secure the necessary consents and facilitate the proposed amendments smoothly.

The consent process is crucial for Hertz as it seeks to enhance its liquidity and manage its debt obligations more effectively, especially in a competitive rental market. Stakeholders are advised to act promptly to ensure their voices are heard in this pivotal financial maneuver.

A RESILIENT TEAM

The Hertz Corporation, operating numerous vehicle rental brands, consistently emphasizes customer convenience while ensuring operational efficiency. This latest financial strategy not only aligns with industry trends but also reasserts Hertz’s position in a market that is increasingly leaning towards more agile business models in response to economic fluctuations.

The company remains optimistic about the potential outcomes of this financial initiative, which reflects its ongoing strategy for growth and sustainability within the global rental car space.

As Hertz moves forward, it is clear that enhancing its financial structure through these consent solicitations is a critical step in navigating the upcoming fiscal landscape while ensuring stakeholders are adequately compensated for their continued support.

CONCLUSION

In conclusion, Hertz's announcement on consent solicitations is pivotal as it prepares for significant changes in its financial landscape while enhancing its investor relations. The company is on track to potentially reap rewards in the form of improved financial flexibility and stakeholder engagement by modifying the existing terms of its senior secured notes. Investors and stakeholders alike are encouraged to stay informed through official notifications and updates from the organization as they proceed with these essential modifications.