Hertz Global Holdings, through its indirect subsidiary The Hertz Corporation, announced the pricing of an upsized $375 million aggregate principal amount of 5.500% Exchangeable Senior Notes due 2030. This offering was increased from the previously announced size of $250 million, with initial purchasers also granted an option to buy an additional $50 million in notes.
The net proceeds, estimated at approximately $360.13 million (or $408.38 million if the option is fully exercised), are intended to fund capped call transactions, partially redeem or repurchase outstanding Senior Notes due 2026, and for general corporate purposes. The notes will bear interest semi-annually and mature on October 1, 2030.
The initial exchange price is set at approximately $9.24 per share, representing a 32.5% premium to the common stock's closing price on September 24, 2025. Affiliates of Pershing Square Capital Management, L.P. entered into cash-settled total return swap transactions for approximately $125 million notional amount of common stock, indicating their continued economic exposure and confidence in Hertz.
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