BONITA SPRINGS, Fla. - Herc Holdings Inc. (NYSE: NYSE:HRI), a North American full-line rental supplier, has upscaled its private offering to $800 million in senior unsecured notes due 2029, a boost from the initially announced $500 million. The offering's completion is anticipated for June 7, 2024, pending customary conditions.
These notes, which will be senior unsecured obligations of Herc Holdings, will incur interest payable semi-annually. The company's current and future domestic subsidiaries, including Herc Rentals Inc., will guarantee the notes on a senior unsecured basis with some exceptions.
Proceeds from the notes sale are expected to be allocated towards repaying a part of the company's senior secured asset-based revolving credit facility and covering related fees and expenses.
The offering targeted qualified institutional buyers within the United States under Rule 144A and to non-U.S. persons in offshore transactions under Regulation S of the Securities Act. Since the notes have not been registered under the Securities Act or any state securities laws, they cannot be offered or sold in the U.S. without registration or an exemption from these requirements.
This press release does not represent an offer to sell or a solicitation to buy the notes or any other securities and must not be considered as such in any jurisdiction where it would be deemed unlawful.
Herc Holdings, established in 1965 and operating through Herc Rentals Inc., has a network of 412 locations and reported revenues of approximately $3.3 billion in 2023. The company provides a range of rental products and services designed to aid customers in working more efficiently and safely.
The information provided is based on a press release statement and includes forward-looking statements subject to future events, risks, and uncertainties that could cause actual outcomes to diverge significantly from those projected.
InvestingPro Insights
In the context of Herc Holdings Inc.'s (NYSE: HRI) recent decision to upscale its private offering to $800 million in senior unsecured notes, several metrics and tips from InvestingPro provide a broader financial perspective on the company's performance and market position.
As of the last twelve months as of Q1 2024, Herc Holdings boasts a market capitalization of $3.86 billion, with a P/E ratio standing at 11.23. This valuation comes amidst a notable 14.9% revenue growth, indicating a solid expansion in the company's financials.
InvestingPro Tips highlight that Herc Holdings has consistently raised its dividend for three consecutive years, demonstrating a commitment to returning value to shareholders. Moreover, the company has maintained liquidity with assets surpassing short-term obligations.
These factors may instill confidence in investors considering the company's notes offering. For those looking for deeper insights, there are additional InvestingPro Tips available, including analyst predictions and stock price trends, which could provide further clarity on the company's potential for profitability this year.
Still, it is crucial to note that six analysts have revised their earnings expectations downwards for the upcoming period, and the stock price has experienced significant volatility over the last three months with an 18.32% total return decrease. Investors may want to consider these aspects, along with the company's high P/E ratio relative to near-term earnings growth, when evaluating the investment opportunity presented by the notes offering.
For those interested in a comprehensive analysis, more InvestingPro Tips can be found at https://www.investing.com/pro/HRI. By using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to exclusive insights that could inform investment decisions.
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