Facing key questions on mid-/ long-term dynamics + path to EBITDA improvement

Research evidence excerpt

Facing key questions on mid-/ long-term dynamics + path to EBITDA improvement

Barclays | Hertz Global Holdings Inc.

$50mn (though it was announced in July that only $30mn was exercised). HTZ estimated net

proceeds of ~$340mn, or up to ~$388mn if optional purchases were fully exercised.3

HTZ indicated plans to use the net proceeds to repay its June expiring revolver of $335mn, as

well as for general corporate purposes

• Share offering: Also in late June and related to the Notes offering, HTZ announced an

offering of ~37mn shares of common stock priced at $2.70 (with no proceeds received by HTZ

and well below the ~$5 that HTZ was trading at prior to the transaction) to be loaned to the

“Share Borrower.” The filing noted the Share Borrower’s intent to sell the borrowed shares

and use the short position to facilitate hedging transactions for investors in the Notes4

Importantly, HTZ did not receive proceeds from the ~$100mn share offering (all proceeds

received by Share Borrower / its affiliates)

While the Notes offering addresses near-term liquidity needs, the dilutive share offering

(earmarked for shorting/hedging) raised concerns. Investor focus remains on medium-/long-

term liquidity and the ‘28/’29 maturity wall. Further, we see questions on potential self-help

available from driving EBITDA improvement and achieving FCF breakeven.

What are the cash calls? Unpacking HTZ’s maturity schedule

The “wall” of non-vehicle / corporate debt maturities is ‘28/’29 when HTZ faces ~$2.7bn and

~$2.5bn, respectively. ’27 maturities are nominal at $18mn but as of end 1Q, HTZ noted $420mn

of non-vehicle debt maturities this year, including $200mn of senior notes due in Dec'26.

Refinancing ahead of the ‘28/’29 maturity wall could be challenged, and potential self-help