Hertz prices $375 million exchangeable notes offering

Hertz Global Holdings Inc. (NASDAQ: HTZ) announced that its subsidiary The Hertz Corporation has entered into an agreement to sell $375 million in aggregate principal amount of 5.500% Exchangeable Senior Notes due 2030 in a private offering.

The offering represents an increase from the previously announced size of $250 million. The initial purchasers also received an option to purchase up to an additional $50 million in aggregate principal amount of the notes within 13 days of issuance. The offering is expected to close on or about September 29, 2025.

Hertz Corp. estimates net proceeds of approximately $360.13 million after deducting initial purchasers' discount and estimated offering expenses, or approximately $408.38 million if the option is exercised in full.

The company intends to use $300 million of the net proceeds to fund the partial redemption or repurchase of its outstanding Senior Notes due 2026 on or before December 31, 2025. Approximately $33.26 million will fund capped call transactions, with remaining proceeds designated for general corporate purposes, which may include repayment of outstanding indebtedness.

The notes will bear interest at 5.500% per year, payable semi-annually beginning April 1, 2026, and will mature on October 1, 2030. The initial exchange rate is set at 108.2808 shares of common stock per $1,000 principal amount of notes, equivalent to an initial exchange price of approximately $9.24 per share.

This exchange price represents a premium of approximately 32.5% to the $6.97 closing price of Hertz common stock on the Nasdaq Global Select Market on September 24, 2025.

The notes will be guaranteed by Hertz Global Holdings Inc., Rental Car Intermediate Holdings LLC, and Hertz Corp.'s existing domestic subsidiaries and future subsidiaries that guarantee indebtedness under the company's first lien credit facilities.

In connection with the pricing, Hertz Corp. entered into privately negotiated cash-settled capped call transactions with certain initial purchasers. The cap price will initially be $13.94 per share, representing a 100% premium above the September 24, 2025 closing price.

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