ESTERO, Fla., June 1, 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 $848.4
million in aggregate principal amount of Series 2016-3 Rental
Car Asset Backed Notes, Class A, Class B, Class C and Class D (the
"Series 2016-3 Notes"), and Series 2016-4 Rental Car Asset Backed
Notes, Class A, Class B, Class C and Class D (the "Series 2016-4
Notes" and, together with the Series 2016-3 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 2016-3 Notes and the
Series 2016-4 Notes are July 2019 and July 2021, respectively. The Series 2016-3
Notes are comprised of approximately $300.0
million aggregate principal amount of 2.27% Rental Car Asset
Backed Notes, Class A, $77.1 million aggregate principal
amount of 3.11% Rental Car Asset Backed Notes, Class B, $22.9
million aggregate principal amount of 4.43% Rental Car Asset
Backed Notes, Class C, and $24.2 million aggregate
principal amount of 5.41% Rental Car Asset Backed Notes, Class
D. The Series 2016-4 Notes are comprised of
approximately $300.0 million aggregate principal amount
of 2.65% Rental Car Asset Backed Notes, Class A, $77.1
million aggregate principal amount of 3.29% Rental Car Asset
Backed Notes, Class B, $22.9 million aggregate principal
amount of 5.06% Rental Car Asset Backed Notes, Class C,
and $24.2 million aggregate principal amount of 6.03%
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 June 8, 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 HERTZ GLOBAL HOLDINGS
Hertz Global operates the Hertz, Dollar, Thrifty and Firefly car
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 car 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, NeverLostĀ®,
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 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 approximately 280
corporate 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 Hertz Global, 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 realize the operational
efficiencies of the acquisition of Dollar Thrifty Automotive Group,
Inc.; our ability to maintain access to third-party distribution
channels, including current or favorable prices, commission
structures and transaction volumes; 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; our ability to successfully outsource a
significant portion of our information technology services or other
activities; 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.
For further information: Investor Relations: Leslie Hunziker, (239) 301-7773,
investorrelations@hertz.com; Media: Hertz Media Relations, (844)
845-2180 (toll free), mediarelations@hertz.com
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SOURCE Hertz Global Holdings, Inc.