HERTZ GLOBAL HOLDINGS, INC 8-K

What Happened
Hertz Global Holdings (through its special-purpose subsidiary Hertz Vehicle Financing III LLC, “HVF III”) announced that on May 28, 2026 it issued $1.0 billion of fixed-rate rental car asset-backed notes in two $500 million series under its 2021 Base Indenture. The offerings (Series 2026-1 and Series 2026-2) were issued to unaffiliated third parties with The Hertz Corporation (“THC”) as administrator and The Bank of New York Mellon Trust Company, N.A. as trustee. This issuance creates new direct financial obligations for HVF III.

Key Details

• Total issued: $1,000,000,000 (Series 2026-1: $500M; Series 2026-2: $500M).
• Class breakdown (each series): Class A $327M, Class B $48M, Class C $64M, Class D $38M, Class E $23M.
• Interest rates: Series 2026-1 — A 5.09%, B 5.67%, C 6.45%, D 7.91%, E 9.64%; Series 2026-2 — A 5.40%, B 6.08%, C 6.76%, D 8.60%, E 10.67%.
• Payment timing: No principal required until June 2029 (Series 2026-1) and June 2031 (Series 2026-2) unless an amortization event occurs; expected final payment dates November 2029 (expected)/Nov 2030 (legal) for 2026-1 and November 2031 (expected)/Nov 2032 (legal) for 2026-2.
• Subordination: Classes B–E in each series are subordinated to higher classes (E is most junior).
• Use of proceeds: Partly to repay HVF III’s outstanding Series 2021-A variable funding notes; remaining proceeds to acquire or refinance eligible vehicles for leasing to THC (or possibly distributed to THC in certain circumstances).
• Enforcement: If amortization events occur or defaults happen, noteholders can force sale of vehicles held by HVF III and may require THC/DTG Operations to return leased vehicles for sale to repay the notes.

Why It Matters
This transaction refinances part of HVF III’s prior debt and provides funding earmarked for Hertz’s U.S. rental fleet—supporting fleet acquisition and refinancing activities. For investors, it (1) increases HVF III’s medium-term secured debt outstanding, (2) establishes defined cash-flow and payment priorities across note classes (with higher yields on more junior tranches), and (3) creates potential enforcement remedies (vehicle sales/returns) for noteholders if certain credit or covenant triggers occur. The interest rates and subordination structure are key to understanding credit risk and potential recovery priority among these notes.