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Hertz unit seeks waivers to postpone acceleration of €725 million of notes in two series
By Rebecca Melvin
New York, May 26 – Hertz Holdings Netherlands BV is requesting holders of its €225 million of 4 1/8% senior notes due 2021 (ISIN: XS1492665770/XS1492665267) and €500 million of 5˝% senior notes due 2023 (ISIN: XS1790929217/XS1790940883) to waive until Sept. 30 certain provisions in the notes’ indentures regarding events of default and to rescind any acceleration of notes.
The issuer said Hertz Global Holdings, Inc. and some of Hertz’s U.S. and Canadian subsidiaries filed to reorganize under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware, and as those entities are guarantors of the notes, the filings constitute an event of default.
Hertz’s principal international operating regions including Europe, Australia and New Zealand are not included in the U.S. Chapter 11 proceedings. In addition, Hertz’s franchised locations, which are not owned by the issuer, are not included in the Chapter 11 proceedings. All of Hertz’s businesses globally, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales and Donlen subsidiaries, continue to operate.
A majority of the holders of the 2023 notes have voted in favor or the waiver, and each of the asset-backed financings voted in favor of the waiver. But only 45.39% of the 2021 notes have voted in favor. Because the waivers are cross-conditional on each waiver being effective, the majority of the 2021 notes must approve the waivers to ensure each is in full force and effect, the company said in a news release.
Holders of the 2021 notes can approve waivers by submitting their vote through Euroclear and Clearstream via their custodian on the existing consent solicitation dated May 15 and as amended on May 20.
Copies of the consent solicitation statement may be obtained by holders from Lucid Issuer Services Ltd., the information and tabulation agent, at (+44 20 7704 0880; hertz@lucid-is.com).
Hertz is an Estero, Fla.-based car rental company.
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