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Hertz has no significant debt maturities until June 2021 after refis
By Devika Patel
Knoxville, Tenn., Nov. 5 – Hertz Global Holdings, Inc. has no significant debt maturities until June 2021, thanks to its refinancing activities in the last quarter.
“In August, we issued $500 million of unsecured senior notes,” executive vice president and chief financial officer Jamere Jackson said on the company’s third quarter ended Sept. 30 earnings conference call on Tuesday.
“The proceeds were used to redeem $700 million of 2020 corporate debt maturities and refinance $500 million of 2021 maturities to 2026.
“As a result, we have no significant corporate debt maturities until June 2021.
“Our improved financial results and stronger balance sheet should enable us to lower both our vehicle and corporate financing costs in the future,” Jackson said.
Adjusted EBITDA was $392 million for the third quarter of 2019, compared to $351 million for the third quarter of 2018.
The company’s adjusted corporate EBITDA to net corporate debt leverage ratio was 5.1x at the end of the quarter.
On July 18, Hertz Corp. priced a $500 million issue of seven-year senior notes (B3/B-) at par to yield 7 1/8% in a quick-to-market trade.
The yield printed at the tight end of yield talk in the 7¼% area. Initial talk was in the 7 3/8% area.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Barclays, BofA Securities Inc., Credit Agricole CIB and RBC Capital Markets LLC.
The proceeds were earmarked, together with proceeds from a rights offering, to redeem Hertz’s 5 7/8% senior notes due 2020 and its 7 3/8% senior notes due 2021, in their entirety, and for general corporate purposes.
Hertz is a car rental company based in Estero, Fla.
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