Simpson Thacher represented the initial purchasers in connection with a Rule 144A offering by The Hertz Corporation (“Hertz”) of $425 million aggregate principal amount of 5.500% Exchangeable Senior Notes due 2030 (the “Exchangeable Notes”), inclusive of Exchangeable Notes sold pursuant to the initial purchasers’ full exercise of their option to purchase additional Exchangeable Notes. In addition, the Firm represented certain financial institutions in capped call transactions entered into with Hertz, and an affiliate of one of the initial purchasers in the privately negotiated total return swap transactions entered into with affiliates of Pershing Square Capital Management, L.P., concurrently with the Exchangeable Notes offering.
Hertz intends to use the net proceeds from the offering of the Exchangeable Notes to fund the cost of entering into the capped call transactions, to fund the partial redemption or repurchase of its outstanding senior notes due 2026 and to use the remaining net proceeds for general corporate purposes, which may include the repayment of outstanding indebtedness.
Hertz Global Holdings, Inc., the indirect parent company of Hertz, is one of the world’s leading car rental and mobility solutions providers. Its subsidiaries and licensees operate the Hertz, Dollar, Thrifty and Firefly vehicle rental brands with more than 11,000 rental locations in 160 countries around the globe, as well as the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the US, and the Hertz 24/7 car sharing business in Europe.
The Simpson Thacher team included Roxane Reardon, John C. Ericson, John O’Connell, Matt Hart, Ben Pittenger, Erica Yoon, Minaal E. Wickremesinghe, Ally Brennan and Adriana Hong (Capital Markets); Jonathan Lindabury, Marc Langer, Lindsey Meyers-Perez, Diana Yen and Cadina Mancini (Derivatives); Jonathan Cantor, Michael Mann, Edward Grais, Kris Liu and Sean Largey (Tax); Linda Barrett and Mtume Sangiewa (Executive Compensation and Employee Benefits); Paige Brinton and Christian Bond (Intellectual Property); Timothy Gallagher (Real Estate); and Jennie Getsin (Blue Sky). Delia Li also provided valuable assistance.