(RTTNews) - Hertz Global Holdings, Inc. (HTZ), a vehicle rental company, Wednesday announced that its subsidiary, The Hertz Corporation, intends to offer $300 million of Exchangeable Senior First-Lien Secured PIK Notes due 2030 in a private offering.
Hertz Corp also expects to grant initial purchasers of the Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $45 million in aggregate principal amount of Notes, the company said in a statement.
The net proceeds received from the private offering will be used for repayment of outstanding indebtedness and general corporate purposes.
The notes will bear interest semi annually in arrears payable on January 1 and July 1 of each year. The interest will consist of a portion to be paid in cash and a portion to be paid in the form of PIK interest.
The notes will mature on July 1, 2030, and are surmised to be guaranteed by the Company, Rental Car Intermediate Holdings, LLC, Hertz Corp.'s direct parent company, and each of Hertz Corp.'s existing domestic subsidiaries and future restricted subsidiaries.
In pre-market activity, HTZ shares were trading at $4.25, down 16.01% on the Nasdaq.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
