Hertz Global Holdings announced that Herc Spinoff Escrow Issuer, a wholly owned subsidiary of Hertz Equipment Rental Corp., has priced $610 million aggregate principal amount of 7.50 percent senior secured second priority notes due 2022 and $625 million aggregate principal amount of 7.75 percent senior secured second priority notes due 2024 in a private offering to finance HERC’s separation from Hertz. The closing of the offering is expected to occur on or about June 9, subject to customary closing conditions.
The gross proceeds will be deposited into an escrow account. Following the release of the proceeds from escrow, the net proceeds are intended to finance the proposed separation of the company’s global equipment rental business as well as pay fees and other expenses in connection with the spin-off transaction.
HERC, which plans to be known as Herc Rentals following its separation from Hertz Glboal, has about 280 branches, 270 in North America. HERC is No. 3 on the RER 100.
