Hertz Announces Pricing of Notes to Finance HERC Spinoff

Hertz Global Holdings announced that Herc Spinoff Escrow Issuer, a wholly owned subsidiary of Hertz Equipment Rental Corp., has priced $610 million aggregate principal amount of 7.50 percent senior secured second priority notes due 2022 and $625 million aggregate principal amount of 7.75 percent senior secured second priority notes due 2024 in a private offering to finance HERC’s separation from Hertz.

Hertz Global Holdings announced that Herc Spinoff Escrow Issuer, a wholly owned subsidiary of Hertz Equipment Rental Corp., has priced $610 million aggregate principal amount of 7.50 percent senior secured second priority notes due 2022 and $625 million aggregate principal amount of 7.75 percent senior secured second priority notes due 2024 in a private offering to finance HERC’s separation from Hertz. The closing of the offering is expected to occur on or about June 9, subject to customary closing conditions.

     The gross proceeds will be deposited into an escrow account. Following the release of the proceeds from escrow, the net proceeds are intended to finance the proposed separation of the company’s global equipment rental business as well as pay fees and other expenses in connection with the spin-off transaction.

     HERC, which plans to be known as Herc Rentals following its separation from Hertz Glboal, has about 280 branches, 270 in North America. HERC is No. 3 on the RER 100.

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.

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