Hertz amends credit agreement for enhanced operating flexibility

By Wendy Van Sickle

Columbus, Ohio, April 23 – Hertz Corp. entered an eighth amendment on April 16 to its credit agreement with Barclays Bank plc as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases the consolidated first-lien leverage ratio in the financial maintenance covenant for each of the fiscal quarters ending June 30, 2024, Sept. 30, 2024, Dec. 31, 2024 and March 31, 2025; requires minimum specified relief period liquidity for each calendar month within each covered quarter; and adds certain limitations on restricted payments and permitted investments, in each case, until the first day of the second fiscal quarter of 2025.

The company said the amendment allows enhanced operating flexibility under its financial maintenance covenant and de-risks its operating environment over the next 12 months and that it entered the amendment as a precautionary measure due to the risk of potential volatility in the macro-economic environment and the risk of its inability to execute on its plans to improve profitability.

The vehicle rental company is based in Estero, Fla.

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