BONITA SPRINGS, Fla. - Herc Holdings Inc. (NYSE: NYSE:HRI) announced its plan to offer $500 million aggregate principal amount of senior unsecured notes due in 2029. The offering is subject to market conditions and other factors. These notes will be senior unsecured obligations of the company, guaranteed by Herc Rentals Inc. and other domestic subsidiaries.
The proceeds from the sale of these notes are intended for the repayment of a portion of Herc Holdings' existing senior secured asset-based revolving credit agreement, as well as covering related fees and expenses. Interest on these notes will be payable semi-annually in arrears.
This private offering is aimed at qualified institutional buyers within the United States under Rule 144A and to non-U.S. persons outside the United States under Regulation S of the Securities Act.
The notes have not been registered under the Securities Act of 1933 or any state securities laws, and unless so registered, may not be offered or sold in the United States absent an exemption from registration requirements.
Herc Holdings Inc., through its subsidiary Herc Rentals Inc., provides full-line rental services with a network of 412 locations across North America. With a team of approximately 7,600 employees, the company generated total revenues of around $3.3 billion in 2023.
This press release does not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities, and shall not constitute an offer, solicitation, or sale where it would be unlawful. The information provided is based on a press release statement and is intended to comply with Rule 135c under the Securities Act.
In other recent news, Herc Holdings has been the subject of several analyst updates and has reported significant financial developments. BofA Securities adjusted its outlook on Herc Holdings, raising the price target to $115 while maintaining an Underperform rating. This adjustment followed Herc's first-quarter results, which surpassed consensus estimates but were slightly below BofA Securities' expectations. The company reported overall revenue of $774 million, excluding contributions from Cinelease, and adjusted EBITDA of $329 million. Herc Holdings also experienced a 5.1% year-over-year rate growth in the first quarter.
KeyBanc maintained its Sector Weight stock rating and price target for Herc Holdings, despite the company's first-quarter results surpassing consensus estimates. The firm expressed concerns over Herc Holdings' future communications with investors due to the pending sale of the Cinelease business. Meanwhile, Herc Holdings reported record-high revenue and adjusted EBITDA for the first quarter of 2024, marking a period of significant growth. The company also declared a 5% rise in its quarterly dividend for 2024.
These recent developments highlight Herc Holdings' financial performance and the attention it has received from analysts. The company's first-quarter performance showed resilience, with rate growth accelerating sequentially throughout the quarter. Herc Holdings also invested $148 million in mergers and acquisitions in the first quarter, adding 11 new locations and opening four additional greenfield locations. Despite some core operations not meeting expectations, the company's 2024 outlook was reiterated, supported by increased visibility.
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