Hertz enters lock-up agreement to restructure European operations

By Sarah Lizee

Olympia, Wash., Nov. 30 – Hertz Global Holdings, Inc. and Hertz Holdings Netherlands BV entered into a lock-up agreement relating to an agreement-in-principle with Hertz Holdings Netherlands’ largest bondholders for a long-term restructuring and recapitalization of the company’s European operations, according to an 8-K filing with the Securities and Exchange Commission.

Bondholders holding 54% of the €225 million of 4 1/8% senior notes due 2021 and 56% of the €500 million of 5˝% senior notes due 2023 have signed the lock-up agreement in support of the transaction.

Under the transaction, Hertz International Ltd. will issue €250 million of senior secured notes in order to raise new money financing. The proceeds will be on lent to Hertz Holdings Netherlands for use in the Hertz Europe business.

Hertz UK Receivables Ltd. will seek to implement a scheme of arrangement under English law to effect some amendments to the terms of the Hertz Holdings Netherlands notes by way of an exchange of the existing notes for two series of new notes.

The scheme transaction will also facilitate a sale of the guarantee claims held by the Hertz Holdings Netherlands noteholders against the U.S. entities who guarantee the notes resulting in cash payments to partially redeem the notes and an overall reduction of the amount of claims continuing under the two new series of notes.

The relevant subsidiaries and affiliates of Hertz Holdings Netherlands will seek to agree to amendment agreements under which certain asset-backed securities issued by International Fleet Financing No.2 BV and a vehicle finance facility between Hertz (UK) Ltd., Hertz Vehicle Financing UK Ltd. and Lombard North Central plc provided thereunder will be amended and extended.

Hertz is an Estero, Fla.-based car rental company. It filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on May 22, 2020. The case number is 20-11218.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.