SOURCE: The Hertz Corporation

The Hertz Corporation

September 21, 2009 07:36 ET

Hertz Completes $2.14 Billion Fleet Debt Refinancing

Deal Upsized at Favorable Terms; Notes Are Aa1 Rated by Moody's

PARK RIDGE, NJ--(Marketwire - September 21, 2009) - Hertz Global Holdings, Inc. (NYSE: HTZ) (the "Company" or "Hertz") announced that Hertz Vehicle Financing, LLC, its indirect wholly owned special purpose subsidiary, has completed a $2.14 billion issuance of Series 2009-1 Variable Funding Rental Car Asset Backed Notes ("VFN"), due January 2012, with Controlled Amortization Payment Dates between November 2011 and January 2012 (the "Notes"). The Notes are rated Aa1 by Moody's, have an advance rate of approximately 67% and a margin of 2.5% above the applicable floating rate index (currently equal to 4.0% on a fixed rate basis excluding fees). The Company has now completed, one year ahead of schedule, transactions affecting a majority of its U.S. fleet debt scheduled to be refinanced by the end of 2010. Additionally, Hertz has no significant corporate debt maturities prior to 2012, and has over $1 billion of unused corporate borrowing capacity.

Mark P. Frissora, the Company's Chairman and Chief Executive Officer, said, "Completion of this VFN facility, and of our $990 million equity and convertible debt offerings earlier this year, demonstrates our ability to efficiently finance the business in difficult market conditions. We are very pleased with the results of the refinancing. The deal was over-subscribed allowing us to raise $2.14 billion, which exceeded our original target of $1.5 billion. In addition the majority of existing lenders recommitted, some increasing their participation, and we attracted new money. We believe the strong support for this facility demonstrates our solid financial condition, our ability to successfully manage the business despite difficult macro conditions and the high quality of the Hertz rental fleet. We are confident of our ability to refinance the remainder of our debt requirement through 2010."

In addition to extending the maturity date for its revolving VFN fleet financing facility, Hertz and its lenders have agreed to certain amendments to the asset-backed securitization agreements which are designed to give the Company greater flexibility in the future.

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc. (NYSE: HTZ), is the world's largest general use car rental brand, operating from 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. Hertz 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 through approximately 350 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 the Company'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 the Company 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 the Company 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 the Company's actual results and its ability to implement its cost savings and efficiency initiatives successfully, and could cause the Company's actual results to differ materially from those expressed in the forward-looking statements. Some important factors include: the Company'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; the Company'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 the Company or persons acting on the Company's behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

The Company 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 the Company'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, and its Quarterly Report on Form 10-Q for the three months ended June 30, 2009, as filed with the SEC on August 7, 2009, could affect the Company'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 the Company's forward-looking statements.