Herc Holdings Inc. completed a private placement of $1.2 billion in senior unsecured notes, with maturities in 2031 and 2034. The transaction, conducted under Rule 144A and Regulation S, allows the company to refinance its existing 5.50% senior notes due 2027 and cover related expenses.
The new notes will be issued to qualified institutional buyers in the United States and to investors outside the U.S. The proceeds will be used to redeem the full $1.2 billion of the 2027 notes, thereby extending the company’s debt profile and potentially lowering its interest burden if the new rates are below 5.50%.
The financing comes shortly after Herc’s $5.5 billion acquisition of H&E Equipment Services, which closed in June 2025. The acquisition increased the company’s leverage and prompted a negative outlook change from S&P Global Ratings in February 2025. By issuing longer‑dated debt, Herc aims to stabilize its capital structure while integrating the new assets.
In its most recent earnings, Herc reported a mixed third‑quarter performance: revenue of $1.3 billion beat the $1.28 billion forecast, but earnings per share of $2.22 fell short of the $2.50 estimate. The revenue beat was driven by strong demand in core rental segments, while the EPS miss reflected higher operating costs and the impact of the acquisition‑related expenses.
Management emphasized that the new debt will support ongoing growth initiatives and provide flexibility for future capital needs. CEO Larry Silber noted that the financing “strengthens our position as a premier rental company in North America” and signals confidence in the company’s long‑term strategy.
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