Hertz Global Holdings Enters New Credit Facility Agreement
Ticker: HTZWW · Form: 8-K · Filed: Apr 22, 2024 · CIK: 1657853
| Field | Detail |
|---|---|
| Company | Hertz Global Holdings, INC (HTZWW) |
| Form Type | 8-K |
| Filed Date | Apr 22, 2024 |
| Risk Level | medium |
| Pages | 6 |
| Reading Time | 7 min |
| Key Dollar Amounts | $0.01 |
| Sentiment | neutral |
Sentiment: neutral
Topics: credit-facility, debt, financing
Related Tickers: HTZ
TL;DR
Hertz just signed a new credit deal, watch their debt levels.
AI Summary
On April 16, 2024, Hertz Global Holdings, Inc. entered into a material definitive agreement related to a new credit facility. This agreement creates a direct financial obligation for the registrant, impacting its financial structure.
Why It Matters
This new credit facility is a significant financial move for Hertz, potentially impacting its liquidity, borrowing costs, and overall financial flexibility.
Risk Assessment
Risk Level: medium — Entering into new credit facilities can introduce new financial obligations and potentially alter the company's debt structure, requiring careful monitoring.
Key Players & Entities
- Hertz Global Holdings, Inc. (company) — Registrant
- April 16, 2024 (date) — Date of agreement
FAQ
What is the nature of the material definitive agreement entered into by Hertz Global Holdings, Inc. on April 16, 2024?
The filing indicates that the agreement is related to a new credit facility, creating a direct financial obligation for the registrant.
What is the primary impact of this filing on Hertz Global Holdings, Inc.'s financial obligations?
The filing states that the agreement creates a direct financial obligation or an obligation under an off-balance sheet arrangement of the registrant.
What specific financial instrument is Hertz Global Holdings, Inc. entering into?
The filing refers to the creation of a new credit facility.
When was the agreement concerning the new credit facility entered into?
The agreement was entered into on April 16, 2024.
What are the key items reported in this 8-K filing for Hertz Global Holdings, Inc.?
The key items reported are the entry into a material definitive agreement, the creation of a direct financial obligation, and financial statements and exhibits.
Filing Stats: 1,816 words · 7 min read · ~6 pages · Grade level 11.2 · Accepted 2024-04-22 16:30:35
Key Financial Figures
- $0.01 — Holdings, Inc. Common Stock par value $0.01 per share HTZ The Nasdaq Stock Mark
Filing Documents
- tm2411442d1_8k.htm (8-K) — 54KB
- tm2411442d1_ex10-1.htm (EX-10.1) — 1659KB
- tm2411442d1_ex10-2.htm (EX-10.2) — 1563KB
- tm2411442d1_ex10-3.htm (EX-10.3) — 793KB
- image_003.jpg (GRAPHIC) — 1KB
- tm2411442d1_ex10-1img001.jpg (GRAPHIC) — 3KB
- tm2411442d1_ex10-1sp3img01.jpg (GRAPHIC) — 5KB
- 0001104659-24-050023.txt ( ) — 4969KB
- htz-20240416.xsd (EX-101.SCH) — 3KB
- htz-20240416_def.xml (EX-101.DEF) — 28KB
- htz-20240416_lab.xml (EX-101.LAB) — 37KB
- htz-20240416_pre.xml (EX-101.PRE) — 26KB
- tm2411442d1_8k_htm.xml (XML) — 9KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. Amendment to Credit Agreement On April 16, 2024, The Hertz Corporation ("THC") entered into Amendment No. 8 to Credit Agreement ("Amendment No. 8"), by and among THC, the Subsidiary Borrowers (as defined below) party thereto, Rental Car Intermediate Holdings, LLC, the other guarantors party thereto and Barclays Bank PLC, as administrative agent (the "Administrative Agent") and the Revolving Lenders party thereto, which amends that certain Credit Agreement, dated as of June 30, 2021, by and among THC, the subsidiary borrowers party thereto from time to time (the "Subsidiary Borrowers"), the several lenders and issuing lenders from time to time party thereto, the Administrative Agent, and Barclays Bank PLC, as collateral agent (as amended, restated, amended and restated, restructured, supplemented, waived and/or otherwise modified from time to time prior to the date hereof, the "First Lien Credit Facility" and, as amended by Amendment No. 8, the "Amended First Lien Credit Facility"). Amendment No. 8 (i) increases the Consolidated First Lien Leverage Ratio in the Financial Maintenance Covenant (each as defined in the Amended First Lien Credit Facility) for each of the fiscal quarters ending June 30, 2024, September 30, 2024, December 31, 2024 and March 31, 2025 (each, a "Covered Quarter"); (ii) requires minimum Specified Relief Period Liquidity (as defined in the Amended First Lien Credit Facility) for each calendar month within each Covered Quarter; and (iii) adds certain limitations on Restricted Payments (as defined in the Amended First Lien Credit Facility) and Permitted Investments (as defined in the Amended First Lien Credit Facility), in each case, until the first day of the second fiscal quarter of 2025. Amendment No. 8 allows THC enhanced operating flexibility under its Financial Maintenance Covenant and derisks its operating environment over the next twelve months. THC entered into Amendment No. 8 as
03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information required by Item 2.03 contained in Item 1.01 of this Current Report is incorporated herein by reference.
Financial Statements and Exhibits
Financial Statements and Exhibits. Exhibit Description 10.1 Amendment No. 8, dated as of April 16, 2024, to Credit Agreement, dated as of June 30, 2021, by and among The Hertz Corporation, the Subsidiary Borrowers party thereto, Rental Car Intermediate Holdings, LLC, the other guarantors party thereto, Barclays Bank PLC, as administrative agent, and the Revolving Lenders party thereto. 10.2 Amendment No. 1 to Second Amended and Restated Series 2021-A Supplement, dated as of April 16, 2024, by and among Hertz Vehicle Financing III LLC, as issuer, The Hertz Corporation, as administrator, Deutsche Bank AG, New York Branch, as program agent, the several committed note purchasers party thereto, the several conduit investors party thereto, the several funding agents for the investor groups party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee. 10.3 Amendment Deed dated April 16, 2024 relating to the amendment of the (i) Issuer Facility Agreement originally dated 25 September 2018 (and as amended on 8 November 2019, 23 December 2020, 29 April 2021, 21 December 2021, 20 December 2022 and 22 September 2023); and (ii) Master Definitions and Constructions Agreement originally dated 25 September 2018 (and as amended on 8 November 2019, 23 December 2020 and as further amended and restated on 29 April 2021, 21 December 2021, 21 June 2022, 20 December 2022 and 22 September 2023), entered into by and among, inter alia , International Fleet Financing No. 2 B.V., Wilmington Trust SP Services (Dublin) Limited, Hertz Automobielen Nederland B.V., Stuurgroep Fleet (Netherlands) B.V., Stuurgroep Holland B.V., Stuurgroep Fleet (Netherlands) B.V. Sucursal En Espana, Hertz France S.A.S., RAC Finance S.A.S., Hertz De Espana SLU, Hertz Autovermietung GMBH, Hertz Fleet Limited, Eurotitrisation S.A., BNP Paribas, BNP Paribas, Italian Branch, BNP Paribas S.A., Hertz Italiana S.R.L., IFM SPV S.R.L., Hertz Fleet Italiana S.R.L., Credit Agricole Corporate and Inve
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HERTZ GLOBAL HOLDINGS, INC. THE HERTZ CORPORATION (each, a Registrant) Date: April 22, 2024 By: /s/ Alexandra Brooks Name: Alexandra Brooks Title: Executive Vice President and Chief Financial Officer