Hertz Global Holdings Issues $834.75M Rental Car Asset-Backed Notes

What Happened
Hertz Global Holdings (through its bankruptcy‑remote subsidiary Hertz Vehicle Financing III LLC, “HVF III”) announced on August 27, 2026 that it issued two series of fixed‑rate rental car asset‑backed notes. HVF III sold $357.75M of Series 2026‑3 Class A–D notes and $477.00M of Series 2026‑4 Class A–D notes (total $834.75M) to unaffiliated investors; The Hertz Corporation (THC) purchased the subordinate Class E notes totaling $40.25M (Series 2026‑3 Class E $17.25M; Series 2026‑4 Class E $23.00M). The offerings are governed by supplements dated August 27, 2026 to the HVF III base indenture, with BNY Mellon as trustee and THC as administrator.

Key Details

• Issuance date: August 27, 2026. Total principal sold to third parties: $834.75M; total principal issued including parent‑purchased Class E notes: $875.00M.
• Interest rates by series (ranges): Series 2026‑3 classes 5.51% (Class A) to 10.33% (Class E); Series 2026‑4 classes 5.87% (Class A) to 11.35% (Class E).
• Payment timing: No required principal payments until Sept 2029 (Series 2026‑3) and Sept 2031 (Series 2026‑4) unless an amortization event occurs; expected legal final payment dates are Feb 2031 (2026‑3) and Feb 2033 (2026‑4).
• Use of proceeds: Partially to repay outstanding HVF III Series 2021‑A variable funding notes; remaining proceeds for acquiring or refinancing eligible rental vehicles or, in certain circumstances, distributions to THC.

Why It Matters
This transaction refinances part of HVF III’s prior funding and secures medium‑term financing for Hertz’s U.S. rental fleet. The tranche structure (senior to subordinated classes) and wide spread in coupon rates show how risk is allocated across noteholders; higher coupons on lower classes reflect greater loss exposure. The postponement of principal amortization until 2029/2031 preserves near‑term cash flow but amortization triggers could accelerate repayments and force vehicle sales under remedies. THC’s purchase of the subordinated Class E notes provides some parent support for the deal. Investors should note the maturity profile and the potential impact on Hertz’s funding costs and fleet financing flexibility.