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Hertz Global Holdings, Inc. (NASDAQ:HTZ) announced Monday that its primary operating subsidiary, The Hertz Corporation, completed an offering of $425 million aggregate principal amount of 5.500% Exchangeable Senior Notes due 2030. The offering includes the full exercise of the initial purchasers’ option to buy an additional $50 million of notes.
The notes were issued at par and will bear interest at a rate of 5.5% per year, payable semi-annually in arrears on April 1 and October 1, beginning April 1, 2026. The notes will mature on October 1, 2030, unless repurchased, redeemed, or exchanged earlier according to their terms.
Holders may exchange the notes at an initial rate of 108.2808 shares of Hertz common stock per $1,000 principal amount, equivalent to an initial exchange price of approximately $9.24 per share. This exchange price represents a 32.5% premium to the $6.97 closing price of Hertz’s common stock on the Nasdaq Global Select Market on September 24, 2025. The notes are exchangeable under certain conditions before July 1, 2030, and at any time after that until the close of business two days before maturity. Hertz may settle exchanges in cash, shares, or a combination.
The notes are fully and unconditionally guaranteed on a senior, unsecured basis by Hertz Global Holdings, Rental Car Intermediate Holdings, LLC, and certain existing and future subsidiaries. The guarantees may be released under specified circumstances.
Holders have the right to require Hertz to repurchase the notes at 100% of the principal plus accrued and unpaid interest if certain fundamental changes occur. Hertz may not redeem the notes before October 6, 2028. After that date, redemption is permitted if the stock price exceeds 130% of the exchange price for specified periods and other conditions are met.
In connection with the offering, Hertz entered into privately negotiated capped call transactions to cover the shares underlying the notes. The cap is initially set at $13.94 per share, a 100% premium over the September 24, 2025 closing price, and is subject to adjustment.
This information is based on a press release statement and a filing with the Securities and Exchange Commission. With a market capitalization of $2.1 billion and significant price volatility, investors seeking comprehensive analysis can access detailed financial health scores and advanced metrics through InvestingPro’s extensive research platform.
In other recent news, Hertz Global Holdings, Inc. announced that its subsidiary, The Hertz Corporation, plans to issue $375 million in exchangeable senior notes due 2030. This offering, which increased from an initial $250 million, is set to close around September 29, subject to customary conditions. The notes will bear an interest rate of 5.500% per year and will mature on October 1, 2030. Furthermore, Hertz has been notified of a settlement distribution totaling $154,054,348.07 related to the In re Automotive Parts Antitrust Litigation. This amount is part of a gross distribution of $171,171,497.85, with applicable fees deducted. The company expects to receive this settlement payment on or around September 30. Additionally, Hertz had initially announced a $250 million notes offering with the option for initial purchasers to buy an additional $37.5 million in notes. These recent developments are part of Hertz’s ongoing financial strategies.
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