SOURCE: The Hertz Corporation

The Hertz Corporation

June 03, 2009 17:35 ET

Hertz Announces Sale of Additional Shares of Common Stock and Convertible Senior Notes in Public Offerings

PARK RIDGE, NJ--(Marketwire - June 3, 2009) - Hertz Global Holdings, Inc. ("Hertz" or the "Company") (NYSE: HTZ) today announced that it had sold an additional 6,900,000 shares of its common stock and $24,755,000 in additional principal amount of its convertible senior notes to the underwriters of its previously reported equity and convertible senior notes public offerings. The sales of the additional shares of common stock and convertible senior notes resulted in net proceeds of approximately $43 million and approximately $24 million, respectively, to Hertz, after deducting underwriting discounts and commissions and before offering expenses payable by Hertz.

The sales were made pursuant to the exercise by the underwriters of each of the common stock and convertible senior notes offerings of their previously reported options to purchase additional securities. The additional common stock sale represents the full exercise of the underwriters' option in the common stock offering.

The Company previously announced that the aggregate gross proceeds of the dual equity and convertible senior notes public offerings and its expected private sale of common stock to investment funds associated with Clayton, Dubilier & Rice, Inc. and The Carlyle Group, which are existing Hertz stockholders, would be approximately $949 million. With the exercises of the underwriters' options, the total offering size of the public offerings and the private placement are now just over $1 billion, and the Company estimates that it will receive approximately $990 million of net proceeds, after deducting underwriting discounts and commissions and before offering expenses payable by Hertz.

The Company stated previously that proceeds of the equity and debt offerings, and the private placement, provide cash to support 2010 debt refinancing while maintaining liquidity to fund growth initiatives. Furthermore, using cash to retire debt will reduce the overall cost of fleet debt and lower fleet interest expense which will also benefit Corporate EBITDA.

Mark P. Frissora, Hertz's Chairman and Chief Executive Officer, said, "We are pleased the equity and debt offerings were well received by the market, and believe that this is a reflection of Hertz's perceived financial strength and our future growth potential. One of our primary objectives is to optimize the efficiency of our 2010 debt refinancing, and the offerings are a significant milestone in that process."

The private placement to our existing stockholders is subject to customary conditions as well as the Company's compliance with its obligation to deliver an information statement to stockholders regarding the approval of the private sale.

About Hertz

The Hertz Corporation, a subsidiary of Hertz, operates the world's largest general use car rental brand, with approximately 8,000 locations in 145 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 42 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia and New Zealand. In addition, the Company has licensee locations in cities and airports in Africa, Asia, and the Middle East. Product and service initiatives such as Hertz #1 Club Gold®, NeverLost® customized, onboard navigation systems, SIRIUS Satellite Radio®, and unique cars and SUVs offered through the Company's Prestige, Fun and Green Collections, set Hertz apart from the competition. In 2008, the Company launched Connect by Hertz, entering the global car sharing market in London, New York City and Paris. The Company also operates one of the world's largest equipment rental businesses, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers from approximately 330 branches in the United States, Canada, China, France and Spain.

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these statements. Forward-looking statements include information concerning Hertz's outlook, anticipated revenues, results of operations and implementation of productivity and efficiency initiatives, including targeted job reductions, and the anticipated savings and restructuring charges expected to be realized or incurred in connection therewith. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "should," "forecast" or similar expressions. These statements are based on certain assumptions that Hertz has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors that Hertz believes are appropriate in these circumstances. As you read this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. Many factors could affect Hertz's actual results and its ability to implement its cost savings and efficiency initiatives successfully, and could cause Hertz's actual results to differ materially from those expressed in the forward-looking statements. Some important factors include: Hertz's operations; economic performance; financial condition; management forecasts; efficiencies, cost savings and opportunities to increase productivity and profitability; income and margins; liquidity and availability of additional or continued fleet financing including as a result of the financial instability of the entities providing credit support; the financial instability of the manufacturers of our vehicles: anticipated growth; economies of scale; the economy; future economic performance; Hertz's ability to maintain profitability during adverse economic cycles, potential tangible and intangible asset impairment charges and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); future acquisitions and dispositions; litigation; potential and contingent liabilities; management's plans; taxes; and refinancing of existing debt. In light of these risks, uncertainties and assumptions, the forward-looking statements contained in this press release might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements attributable to Hertz or persons acting on Hertz's behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and Hertz undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Hertz cautions you therefore that you should not rely unduly on these forward-looking statements. You should understand the risks and uncertainties discussed in "Risk Factors" and elsewhere in Hertz's 2008 Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as filed with the United States Securities and Exchange Commission, or the "SEC," on March 3, 2009, could affect Hertz's future results and the outcome of its implementation of its cost savings and efficiency initiatives, and could cause those results or other outcomes to differ materially from those expressed or implied in Hertz's forward-looking statements.