ESTERO, Fla., Sept. 14, 2017 /PRNewswire/ -- Hertz Global
Holdings, Inc. (NYSE: HTZ) (the "Company") today announced that
Hertz Vehicle Financing II LP ("HVF II"), a wholly owned special
purpose subsidiary of the Company, priced $450.0 million in aggregate principal amount of
Series 2017-1 Rental Car Asset Backed Notes, Class A, Class B,
Class C and Class D (the "Series 2017-1 Notes"), and $350.0 million in aggregate principal amount of
Series 2017-2 Rental Car Asset Backed Notes, Class A, Class B, and
Class C (the "Series 2017-2 Notes" and, together with the Series
2017-1 Notes, the "Notes"), in each case to be sold to unaffiliated
third parties. The Company utilizes the HVF II securitization
platform to finance its U.S. rental car fleet.
The expected maturities of the Series 2017-1 Notes and the
Series 2017-2 Notes are October 2020
and October 2022, respectively.
The weighted average interest rates of the Series 2017-1 Notes and
Series 2017-2 Notes are 3.38% and 3.57%, respectively.
The Class B Notes of each series are subordinated to the Class A
Notes of such series. The Class C Notes of each series are
subordinated to the Class A Notes and the Class B Notes of such
series. The Class D Notes of each series are subordinated to the
Class A Notes, the Class B Notes and the Class C Notes of such
series. The Series 2017-2 Class D Notes will be retained by
HVF II or conveyed to an affiliate of HVF II.
The net proceeds from the sale of the Notes generally are
expected to be used (i) to make loans to Hertz Vehicle Financing
LLC, a wholly owned special purpose subsidiary of the Company,
and/or (ii) to repay a portion of the outstanding principal amount
of HVF II's Series 2013-A Variable Funding Notes, as well as other
series of notes issued by HVF II, from time to time. The
offering is expected to close on September
20, 2017, subject to customary closing conditions.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any of the Notes or any other
securities, nor will there be any sale 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 will be sold in reliance on an exemption
from the registration requirements provided by Rule 144A under the
Securities Act of 1933 (the "Securities Act") and, solely in the
case of the Class A Notes, the Class B Notes and the Class C Notes
of each series, to investors outside the
United States pursuant to Regulation S under the Securities
Act. None of the Notes will be registered under the
Securities Act or the securities laws of any state or other
jurisdiction, and the Notes 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 the securities laws of any
applicable state or other jurisdiction.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings,
Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands
in approximately 9,700 corporate and franchisee locations
throughout North America,
Europe, The Caribbean, Latin
America, Africa, the
Middle East, Asia, Australia and New
Zealand. The Hertz Corporation 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, Ultimate
Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered
through the Adrenaline, Dream, Green and Prestige Collections set
Hertz apart from the competition. Additionally, The Hertz
Corporation owns the vehicle leasing and fleet management leader
Donlen Corporation, operates the Firefly vehicle rental brand and
Hertz 24/7 car sharing business in international markets and sells
vehicles through Hertz Car Sales.
CAUTIONARY NOTE CONCERNING FORWARD LOOKING STATEMENTS
Certain statements contained in this release, and in related
comments by the Company's management, include "forward-looking
statements." Forward-looking statements include information
concerning the Company's liquidity and its possible or assumed
future results of operations, including descriptions of its
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 the Company has
made in light of its experience in the industry as well as its
perceptions of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
in these circumstances. The Company believes these judgments are
reasonable, but you should understand that these statements are not
guarantees of performance or results, and the Company's 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 filed or furnished
to the Securities and Exchange Commission ("SEC"). Among other
items, such factors could include: any claims, investigations or
proceedings arising as a result of the restatement in 2015 of the
Company's previously issued financial results; the Company's
ability to remediate the material weaknesses in its internal
controls over financial reporting; levels of travel demand,
particularly with respect to airline passenger traffic in
the United States and in global
markets; the effect of the Company's separation of its vehicle and
equipment rental businesses, any failure by Herc Holdings Inc. to
comply with the agreements entered into in connection with the
separation and the Company's 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 the Company's markets on rental volume
and pricing, including on the Company's pricing policies or use of
incentives; increased vehicle costs due to declines in the value of
the Company's non-program vehicles; occurrences that disrupt rental
activity during the Company's peak periods; the Company's ability
to purchase adequate supplies of competitively priced vehicles and
risks relating to increases in the cost of the vehicles it
purchases; the Company's ability to accurately estimate future
levels of rental activity and adjust the number and mix of vehicles
used in its rental operations accordingly; the Company's ability to
maintain sufficient liquidity and the availability to it of
additional or continued sources of financing for its revenue
earning vehicles and to refinance its existing indebtedness; the
Company's ability to adequately respond to changes in technology
and customer demands; the Company's access to third-party
distribution channels and related prices, commission structures and
transaction volumes; an increase in the Company's vehicle costs or
disruption to its rental activity, particularly during its peak
periods, due to safety recalls by the manufacturers of its
vehicles; a major disruption in the Company's communication or
centralized information networks; financial instability of the
manufacturers of the Company's vehicles; any impact on the Company
from the actions of its franchisees, dealers and independent
contractors; the Company's ability to sustain operations 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; the
Company's ability to successfully integrate acquisitions and
complete dispositions; the Company's ability to maintain favorable
brand recognition; costs and risks associated with litigation and
investigations; risks related to the Company's indebtedness,
including its substantial amount of debt, its ability to incur
substantially more debt, the fact that substantially all of its
consolidated assets secure certain of its outstanding indebtedness
and increases in interest rates or in its borrowing margins; the
Company's ability to meet the financial and other covenants
contained in its Senior Facilities, its outstanding unsecured
Senior Notes, its Senior Second Priority Secured Notes and certain
asset-backed and asset-based arrangements; changes in accounting
principles, or their application or interpretation, and the
Company's ability to make accurate estimates and the assumptions
underlying the estimates, which could have an effect on operating
results; risks associated with operating in many different
countries, including the risk of a violation or alleged violation
of applicable anticorruption or antibribery laws and the Company's
ability to repatriate cash from non-U.S. affiliates without adverse
tax consequences; the Company's ability to successfully outsource a
significant portion of its information technology services or other
activities; the Company's ability to successfully implement its
finance and information technology transformation programs; 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 the Company's
operations, the cost thereof or applicable tax rates; changes to
the Company's senior management team and the dependence of its
business operations on its senior management team; the effect of
tangible and intangible asset impairment charges; the Company's
exposure to uninsured claims in excess of historical levels;
fluctuations in interest rates and commodity prices; the Company's
exposure to fluctuations in foreign currency exchange rates and
other risks described from time to time in periodic and current
reports that the Company files with the SEC.
Additional information concerning these and other factors can be
found in the Company's filings with the SEC, including its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
You should not place undue reliance on forward-looking
statements. All forward-looking statements attributable to the
Company or persons acting on its 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.