ESTERO, Fla., Sept. 8, 2016 /PRNewswire/ -- Hertz Global
Holdings, Inc. (NYSE: HTZ) (the "Company") announced today that its
wholly-owned subsidiary, The Hertz Corporation ("Hertz"), has
entered into an agreement to sell $800
million aggregate principal amount of 5.50% Senior
Notes due 2024 (the "Notes") in a private offering (the "Offering")
exempt from the registration requirements of the Securities Act of
1933, as amended (the "Securities Act"). The Offering is expected
to close on or about September 22, 2016, subject to customary
closing conditions.
The Notes will pay interest semi-annually in arrears. The Notes
are expected to be guaranteed on a senior unsecured basis by the
domestic subsidiaries of Hertz that guarantee its senior credit
facilities from time to time.
Hertz intends to use the net proceeds from the issuance of the
Notes, together with available cash, to redeem $800 million of Hertz's 6.75% Senior Notes due
2019.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any of the Notes (and the
guarantees of the Notes) or any other securities, nor will there be
any sale of the Notes (or any guarantees of the Notes) or any other
securities in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or other
jurisdiction. The Notes (and the guarantees of the Notes) will be
issued in reliance on the exemption from the registration
requirements provided by Rule 144A under the Securities Act and,
outside of the United States, only
to non-U.S. investors pursuant to Regulation S under the Securities
Act. None of the Notes and such guarantees have been registered
under the Securities Act or any state or other jurisdiction's
securities laws, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and applicable state and other jurisdiction's
securities laws.
ABOUT THE COMPANY
Hertz Global operates the Hertz, Dollar and Thrifty vehicle
rental brands in approximately 10,000 corporate and franchisee
locations throughout North
America, Europe, Latin
America, Africa, the
Middle East, Asia, Australia, and New
Zealand. Hertz Global is one of the largest worldwide
airport general use vehicle rental companies, and the Hertz brand
is one of the most recognized in the world. Product and service
initiatives such as Hertz Gold Plus Rewards, Carfirmations, Mobile
Wi-Fi and unique vehicles offered through the Adrenaline, Dream,
Green and Prestige Collections set Hertz Global apart from the
competition. Additionally, Hertz Global owns the vehicle
leasing and fleet management leader Donlen Corporation, operates
the Hertz 24/7 hourly vehicle rental business in international
markets and sells vehicles through its Rent2Buy program. For more
information about Hertz Global, visit: www.hertz.com.
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release include
"forward-looking statements." Forward-looking statements include
information concerning our liquidity and our possible or assumed
future results of operations, including descriptions of our
business strategies. These statements often include words such as
"believe," "expect," "project," "potential," "anticipate,"
"intend," "plan," "estimate," "seek," "will," "may," "would,"
"should," "could," "forecasts" or similar expressions. These
statements are based on certain assumptions that we have made in
light of our experience in the industry as well as our perceptions
of historical trends, current conditions, expected future
developments and other factors we believe are appropriate in these
circumstances. We believe these judgments are reasonable, but you
should understand that these statements are not guarantees of
performance or results, and our actual results could differ
materially from those expressed in the forward-looking statements
due to a variety of important factors, both positive and negative,
that may be revised or supplemented in subsequent reports on Forms
10-K, 10-Q and 8-K.
Among other items, such factors could include: the effect of the
debt markets on the Offering; Hertz's ability to satisfy the
closing conditions to the Offering; any claims, investigations or
proceedings arising as a result of the restatement of our
previously issued financial results; our ability to remediate the
material weaknesses in our internal controls over financial
reporting; levels of travel demand, particularly with respect to
airline passenger traffic in the U.S. and in global markets; the
effect of our separation of our vehicle and equipment rental
businesses, any failure by Herc Holdings Inc. to comply with the
agreements entered into in connection with the separation and our
ability to obtain the expected benefits of the separation;
significant changes in the competitive environment, including as a
result of industry consolidation, and the effect of competition in
our markets on rental volume and pricing, including on our pricing
policies or use of incentives; increased vehicle costs due to
declines in the value of our non-program vehicles; occurrences that
disrupt rental activity during our peak periods; our ability to
purchase adequate supplies of competitively priced vehicles and
risks relating to increases in the cost of the vehicles we
purchase; our ability to accurately estimate future levels of
rental activity and adjust the number and mix of vehicles used in
our rental operations accordingly; our ability to maintain
sufficient liquidity and the availability to us of additional or
continued sources of financing for our revenue earning vehicles and
to refinance our existing indebtedness; our ability to adequately
respond to changes in technology and customer demands; our ability
to maintain access to third-party distribution channels, including
current or favorable prices, commission structures and transaction
volumes; an increase in our vehicle costs or disruption to our
rental activity, particularly during our peak periods, due to
safety recalls by the manufacturers of our vehicles; a major
disruption in our communication or centralized information
networks; financial instability of the manufacturers of our
vehicles; any impact on us from the actions of our franchisees,
dealers and independent contractors; our ability to maintain
profitability during adverse economic cycles and unfavorable
external events (including war, terrorist acts, natural disasters
and epidemic disease); shortages of fuel and increases or
volatility in fuel costs; our ability to successfully integrate
acquisitions and complete dispositions; our ability to maintain
favorable brand recognition; costs and risks associated with
litigation and investigations; risks related to our indebtedness,
including our substantial amount of debt, our ability to incur
substantially more debt, the fact that substantially all of our
consolidated assets secure certain of our outstanding indebtedness
and increases in interest rates or in our borrowing margins; our
ability to meet the financial and other covenants contained in our
Senior Facilities, our outstanding unsecured Senior Notes and
certain asset-backed and asset-based arrangements; changes in
accounting principles, or their application or interpretation, and
our ability to make accurate estimates and the assumptions
underlying the estimates, which could have an effect on earnings;
risks associated with operating in many different countries,
including the risk of a violation or alleged violation of
applicable anticorruption or antibribery laws; our ability to
successfully outsource a significant portion of our information
technology services or other activities; changes in the existing,
or the adoption of new laws, regulations, policies or other
activities of governments, agencies and similar organizations where
such actions may affect our operations, the cost thereof or
applicable tax rates; changes to our senior management team and the
dependence of our business operations on our senior management
team; the effect of tangible and intangible asset impairment
charges; our exposure to uninsured claims in excess of historical
levels; fluctuations in interest rates and commodity prices; our
exposure to fluctuations in foreign exchange rates; and other risks
described from time to time in periodic and current reports that we
file with the SEC.
The Company therefore cautions you against placing undue
reliance on forward looking statements. All forward-looking
statements attributable to the Company or persons acting on the
Company's behalf are expressly qualified in their entirety by the
foregoing cautionary statements. All such statements speak
only as of the date made, and the Company undertakes no obligation
to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or
otherwise.
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SOURCE Hertz Global Holdings, Inc.