Hertz Global Holdings, Inc. - 8-K Filing Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed on January 26, 2018, by Hertz Global Holdings, Inc. (HGH) and The Hertz Corporation. The report details a material definitive agreement entered into on January 24, 2018, involving Hertz Vehicle Financing II LP (HVF II), a wholly-owned special purpose subsidiary of HGH used to finance the U.S. rental car fleet.
Key Financial Metrics and Transaction Details
HVF II issued $1.0 billion in aggregate principal amount of Series 2018-1 Rental Car Asset Backed Notes. The filing does not provide revenue, profit, cash flow, or margin data for the reporting period, as this is a transaction-specific filing rather than a periodic financial report.
| Note Class | Principal Amount | Interest Rate | Purchaser |
|---|---|---|---|
| Class A | $764.0 million | 3.29% | Unaffiliated third parties |
| Class B | $179.9 million | 3.60% | Unaffiliated third parties |
| Class C | $56.1 million | 4.39% | Unaffiliated third parties |
| Class D | $58.2 million | 5.86% | The Hertz Corporation |
| Class RR | $67.6 million | 7.32% | The Hertz Corporation |
Expected Maturity: February 2023.
Use of Proceeds: Net proceeds are expected to repay a portion of outstanding Series 2013-A Variable Funding Notes and/or make loans to Hertz Vehicle Financing LLC.
Material Changes and Structure
The transaction represents a new issuance of debt securities to refinance existing obligations or fund fleet loans. The notes are structured with a seniority hierarchy: Class A is senior to all other classes; Class B is subordinated to Class A; Class C is subordinated to Classes A and B; Class D is subordinated to Classes A, B, and C; and Class RR is subordinated to all preceding classes.
Guidance, Risks, and Contingencies
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard incorporation of the Series 2018-1 Supplement terms. The transaction creates a direct financial obligation for the registrant.
Key Facts for Investor Verification
- Verify the total debt load impact of the $1.0 billion issuance against the repayment of Series 2013-A notes.
- Confirm the specific allocation of proceeds between debt repayment and new loans to Hertz Vehicle Financing LLC.
- Review the full terms of the Series 2018-1 Supplement (Exhibit 4.11.11) for covenants and default conditions.
- Note that Hertz retained the riskier Class D and Class RR notes, which carry higher interest rates (5.86% and 7.32%) compared to the external notes.