ESTERO, Fla., Feb. 4, 2016 /PRNewswire/ -- Hertz Global
Holdings, Inc. (NYSE: HTZ) ("Hertz Global" or the "Company") today
announced that Hertz Vehicle Financing II LP ("HVF II"), a wholly
owned special purpose subsidiary of the Company, priced $1.06
billion in aggregate principal amount of Series 2016-1 Rental
Car Asset Backed Notes, Class A, Class B, Class C and Class D (the
"Series 2016-1 Notes"), and Series 2016-2 Rental Car Asset Backed
Notes, Class A, Class B, Class C and Class D (the "Series 2016-2
Notes" and, together with the Series 2016-1 Notes, the
"Notes"). The Company utilizes the HVF II securitization
platform to finance its U.S. rental car fleet.
The expected maturities of the Series 2016-1 Notes and the
Series 2016-2 Notes are March 2019 and March 2021,
respectively. The Series 2016-1 Notes are comprised of
approximately $332,902,000 aggregate principal amount of 2.32%
Rental Car Asset Backed Notes, Class A, $81,187,000 aggregate
principal amount of 3.72% Rental Car Asset Backed Notes, Class
B, $25,152,000 aggregate principal amount of 4.75% Rental Car
Asset Backed Notes, Class C, and $26,549,000 aggregate
principal amount of 5.73% Rental Car Asset Backed Notes, Class
D. The Series 2016-2 Notes are comprised of
approximately $425,000,000 aggregate principal amount of 2.95%
Rental Car Asset Backed Notes, Class A, $103,648,000 aggregate
principal amount of 3.94% Rental Car Asset Backed Notes, Class
B, $32,111,000 aggregate principal amount of 4.99% Rental Car
Asset Backed Notes, Class C, and $33,894,000 aggregate
principal amount of 5.97% Rental Car Asset Backed Notes, Class
D. 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 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 and HVF II's
Series 2014-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 February 11, 2016, 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,
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 the Company
The Company, through its subsidiary The Hertz Corporation
("Hertz"), operates the Hertz, Dollar, Thrifty and Firefly car
rental brands in more than 10,000 corporate and licensee locations
throughout approximately 150 countries in North America, Europe, Latin
America, Asia, Australia, Africa, the Middle
East and New Zealand. Hertz
is one of the largest worldwide airport general use car rental
companies with more than 1,600 airport locations in the U.S. and
more than 1,400 airport locations internationally. Product and
service initiatives such as Hertz Gold Plus Rewards, NeverLostĀ®,
Carfirmations, Mobile Wi-Fi and unique vehicles offered
through the Adrenaline, Dream, Green and Prestige Collections set
Hertz apart from the competition. Additionally, Hertz owns
the vehicle leasing and fleet management leader Donlen Corporation,
operates the Hertz 24/7 hourly car rental business in international
markets and sells vehicles through its Rent2Buy program. The
Company also owns Hertz Equipment Rental Corporation ("HERC"), one
of the largest equipment rental businesses with more than 275
locations worldwide offering a diverse line of equipment and tools
for rent and sale. HERC primarily serves the construction,
industrial, oil, gas, entertainment and government sectors. For
more information about the Company, visit: www.hertz.com.
Cautionary Note Concerning Forward Looking Statements
Certain statements contained in this release 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.
Among other items, such factors could include: the effect of the
debt markets on the offering; the Company'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; the effect of our proposed separation of HERC and
ability to obtain the expected benefits of any related transaction;
levels of travel demand, particularly with respect to airline
passenger traffic in the United States and in global
markets; 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; an increase in our
fleet costs as a result of an increase in the cost of new vehicles
and/or a decrease in the price at which we dispose of used vehicles
either in the used vehicle market or under repurchase or guaranteed
depreciation programs; occurrences that disrupt rental activity
during our peak periods; our ability to achieve and maintain cost
savings and efficiencies and realize opportunities to increase
productivity and profitability; our ability to accurately estimate
future levels of rental activity and adjust the size and mix of our
fleet accordingly; our ability to maintain sufficient liquidity and
the availability to us of additional or continued sources of
financing for our revenue earning equipment and to refinance our
existing indebtedness; our ability to integrate the car rental
operations of Dollar Thrifty Automotive Group, Inc. ("Dollar
Thrifty") and realize operational efficiencies from the
acquisition; our ability to maintain access to third-party
distribution channels, including current or favorable prices,
commission structures and transaction volumes; the operational and
profitability impact of the divestitures that we agreed to
undertake in order to secure regulatory approval for the
acquisition of Dollar Thrifty; an increase in our fleet costs or
disruption to our rental activity, particularly during our peak
periods, due to safety recalls by the manufacturers of our vehicles
and equipment; changes to our senior management team; a major
disruption in our communication or centralized information
networks; financial instability of the manufacturers of our
vehicles and equipment, which could impact their ability to perform
under agreements with us and/or their willingness or ability to
make cars available to us or the rental car industry on
commercially reasonable terms; 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 and increases in interest rates or in our
borrowing margins; our ability to meet the financial and other
covenants contained in our Senior Credit 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; 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; 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; and
our exposure to fluctuations in foreign exchange rates.
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including our most recent Annual Report 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.