| Delaware (State or other jurisdiction of incorporation or organization) | | | 7510 (Primary Standard Industrial Classification Code Number) | | | 61-1770902 (I.R.S. Employer Identification No.) | |
| Gregory Pryor Colin Diamond Andrew J. Ericksen David M. Johansen White & Case LLP 1221 Avenue of the Americas New York, New York 10020 + 1 (212) 819-8200 | | | Roxane F. Reardon John C. Ericson John G. O’Connell Simpson Thacher & Bartlett LLP 425 Lexington Avenue New York, New York 10017 +1 (212) 455-2000 | |
| Large accelerated filer ☐ | | | Accelerated filer ☒ | | | Non-accelerated filer ☐ | | | Smaller reporting company ☐ | | | Emerging growth company ☐ | |
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Title of Each Class of Securities to be Registered(1) | | | | Amount To Be Registered(2) | | | | Proposed Maximum Offering Price Per Share(3) | | | | Proposed Maximum Aggregate Offering Price(3) | | | | Amount of Registration Fee(4) | | ||||||||||||
Common stock, par value $0.01 per share | | | | | | 42,665,000 | | | | | | $ | 29.00 | | | | | | $ | 1,237,285,000 | | | | | | $ | 114,696.32 | | |
| |||||||||||||
| | | Nine Months Ended September 30, | | | Year Ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
| | | (in millions, except per share data) | | |||||||||||||||||||||||||||
Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | $ | 5,387 | | | | | $ | 4,023 | | | | | $ | 5,258 | | | | | $ | 9,779 | | | | | $ | 9,504 | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct vehicle and operating | | | | | 2,855 | | | | | | 2,624 | | | | | | 3,627 | | | | | | 5,486 | | | | | | 5,355 | | |
Depreciation of revenue earning vehicles and lease charges | | | | | 420 | | | | | | 1,632 | | | | | | 2,032 | | | | | | 2,565 | | | | | | 2,690 | | |
Non-vehicle depreciation and amortization(a) | | | | | 153 | | | | | | 168 | | | | | | — | | | | | | — | | | | | | — | | |
Selling, general and administrative | | | | | 498 | | | | | | 506 | | | | | | 664 | | | | | | 969 | | | | | | 1,017 | | |
Interest expense, net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Vehicle | | | | | 243 | | | | | | 360 | | | | | | 455 | | | | | | 494 | | | | | | 448 | | |
Non-vehicle (excludes contractual interest of $75 million for the nine months ended September 30, 2020 and $129 million for the year ended December 31, 2020) | | | | | 157 | | | | | | 118 | | | | | | 153 | | | | | | 311 | | | | | | 291 | | |
Total interest expense, net | | | | | 400 | | | | | | 478 | | | | | | 608 | | | | | | 805 | | | | | | 739 | | |
Technology-related intangible and other asset impairments | | | | | — | | | | | | 193 | | | | | | 213 | | | | | | — | | | | | | — | | |
Other (income) expense, net | | | | | (20) | | | | | | (15) | | | | | | (9) | | | | | | (59) | | | | | | (40) | | |
Reorganization items, net | | | | | 677 | | | | | | 101 | | | | | | 175 | | | | | | — | | | | | | — | | |
(Gain) from the sale of a business | | | | | (400) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Change in fair value of Public Warrants | | | | | (16) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total expenses | | | | | 4,567 | | | | | | 5,687 | | | | | | 7,310 | | | | | | 9,766 | | | | | | 9,761 | | |
Income (loss) before income taxes | | | | | 820 | | | | | | (1,664) | | | | | | (2,052) | | | | | | 13 | | | | | | (257) | | |
Income tax (provision) benefit | | | | | (193) | | | | | | 232 | | | | | | 329 | | | | | | (63) | | | | | | 30 | | |
Net income (loss) | | | | | 627 | | | | | | (1,432) | | | | | | (1,723) | | | | | | (50) | | | | | | (227) | | |
Net (income) loss attributable to noncontrolling interests | | | | | (1) | | | | | | 7 | | | | | | 9 | | | | | | (8) | | | | | | 2 | | |
Net income (loss) attributable to Hertz Global | | | | | 626 | | | | | | (1,425) | | | | | | (1,714) | | | | | | (58) | | | | | | (225) | | |
Dividends on Series A Preferred Stock | | | | | (34) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income (loss) available to Hertz Global common stockholders | | | | $ | 592 | | | | | $ | (1,425) | | | | | $ | (1,714) | | | | | $ | (58) | | | | | $ | (225) | | |
| | | Nine Months Ended September 30, | | | Year Ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
| | | (in millions, except per share data) | | |||||||||||||||||||||||||||
Weighted-average shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 264 | | | | | | 148 | | | | | | 150 | | | | | | 117 | | | | | | 96 | | |
Diluted | | | | | 270 | | | | | | 148 | | | | | | 150 | | | | | | 117 | | | | | | 96 | | |
Earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (loss) per share | | | | $ | 2.25 | | | | | $ | (9.65) | | | | | $ | (11.44) | | | | | $ | (0.49) | | | | | $ | (2.35) | | |
Diluted earnings (loss) per share | | | | $ | 2.14 | | | | | $ | (9.65) | | | | | $ | (11.44) | | | | | $ | (0.49) | | | | | $ | (2.35) | | |
| | | As of September 30, 2021 | | | As of December 31, | | ||||||||||||
| | | 2020 | | | 2019 | | ||||||||||||
| | | (in millions) | | |||||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 2,703 | | | | | $ | 1,096 | | | | | $ | 865 | | |
Revenue earning vehicles, net | | | | | 8,563 | | | | | | 6,062 | | | | | | 13,789 | | |
Total assets | | | | | 19,593 | | | | | | 16,908 | | | | | | 24,627 | | |
Total debt | | | | | 8,718 | | | | | | 6,267 | | | | | | 17,089 | | |
Total stockholders’ equity attributable to Hertz Global | | | | | 4,206 | | | | | | 56 | | | | | | 1,769 | | |
| | | Nine Months Ended September 30, | | | Years Ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
Other Financial and Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted Corporate EBITDA (millions)(1) | | | | $ | 1,502 | | | | | $ | (855) | | | | | $ | (995) | | | | | $ | 649 | | | | | $ | 433 | | |
Transaction Days (thousands)(2) | | | | | 88,023 | | | | | | 81,813 | | | | | | 107,299 | | | | | | 205,998 | | | | | | 199,880 | | |
Total RPD(3) | | | | $ | 59.75 | | | | | $ | 43.98 | | | | | $ | 43.09 | | | | | $ | 44.26 | | | | | $ | 43.32 | | |
Total RPU(4) | | | | $ | 1,389 | | | | | $ | 674 | | | | | $ | 713 | | | | | $ | 1,062 | | | | | $ | 1,050 | | |
Depreciation per Unit per Month(5) | | | | $ | 111 | | | | | $ | 244 | | | | | $ | 246 | | | | | $ | 244 | | | | | $ | 255 | | |
Vehicle Utilization(6) | | | | | 77% | | | | | | 50% | | | | | | 54% | | | | | | 79% | | | | | | 80% | | |
| | | Nine Months Ended September 30, | | | Years Ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Net income (loss) attributable to Hertz Global | | | | $ | 626 | | | | | $ | (1,425) | | | | | $ | (1,714) | | | | | $ | (58) | | | | | $ | (225) | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax provision (benefit) | | | | | 193 | | | | | | (232) | | | | | | (329) | | | | | | 63 | | | | | | (30) | | |
Non-vehicle depreciation and amortization | | | | | 153 | | | | | | 168 | | | | | | 225 | | | | | | 203 | | | | | | 218 | | |
Non-vehicle debt interest, net(a) | | | | | 157 | | | | | | 118 | | | | | | 153 | | | | | | 311 | | | | | | 291 | | |
Vehicle debt-related charges(b) | | | | | 62 | | | | | | 37 | | | | | | 50 | | | | | | 38 | | | | | | 36 | | |
Loss on extinguishment of vehicle debt(c) | | | | | — | | | | | | — | | | | | | 5 | | | | | | — | | | | | | 22 | | |
Restructuring and restructuring related charges(d) | | | | | 72 | | | | | | 54 | | | | | | 64 | | | | | | 14 | | | | | | 32 | | |
Technology-related intangible and other asset impairments(e) | | | | | — | | | | | | 193 | | | | | | 213 | | | | | | — | | | | | | — | | |
Information technology and finance transformation costs(f) | | | | | 13 | | | | | | 34 | | | | | | 42 | | | | | | 114 | | | | | | 98 | | |
Reorganization items, net(g) | | | | | 677 | | | | | | 101 | | | | | | 175 | | | | | | — | | | | | | — | | |
Pre-reorganization and non-debtor financing charges(h) | | | | | 41 | | | | | | 89 | | | | | | 109 | | | | | | — | | | | | | — | | |
Gain from the Donlen Sale(i) | | | | | (400) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Change in fair value of Public Warrants(j) | | | | | (16) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other items(k) | | | | | (76) | | | | | | 8 | | | | | | 12 | | | | | | (36) | | | | | | (9) | | |
Adjusted Corporate EBITDA | | | | $ | 1,502 | | | | | $ | (855) | | | | | $ | (995) | | | | | $ | 649 | | | | | $ | 433 | | |
| | | Nine Months Ended September 30, | | | Years Ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
| | | (in millions, except where noted) | | |||||||||||||||||||||||||||
Total RPD: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | $ | 5,251 | | | | | $ | 3,535 | | | | | $ | 4,628 | | | | | $ | 9,107 | | | | | $ | 8,756 | | |
Foreign currency adjustment(a) | | | | | 9 | | | | | | 62 | | | | | | (5) | | | | | | 11 | | | | | | (97) | | |
Total Revenues – adjusted for foreign currency | | | | $ | 5,260 | | | | | $ | 3,597 | | | | | $ | 4,623 | | | | | $ | 9,118 | | | | | $ | 8,659 | | |
Transaction Days (in thousands) | | | | | 88,023 | | | | | | 81,813 | | | | | | 107,299 | | | | | | 205,998 | | | | | | 199,880 | | |
Total RPD (in whole dollars) | | | | $ | 59.75 | | | | | $ | 43.98 | | | | | $ | 43.09 | | | | | $ | 44.26 | | | | | $ | 43.32 | | |
| | | Nine Months Ended September 30, | | | Years Ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
| | | (in millions, except where noted) | | |||||||||||||||||||||||||||
Total Revenue Per Unit Per Month: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Revenues – adjusted for foreign currency(a)(b) | | | | $ | 5,260 | | | | | $ | 3,597 | | | | | $ | 4,623 | | | | | $ | 9,118 | | | | | $ | 8,659 | | |
Average Vehicles (in whole units) | | | | | 420,753 | | | | | | 593,145 | | | | | | 540,340 | | | | | | 715,602 | | | | | | 687,300 | | |
Total revenue per unit (in whole dollars) | | | | $ | 12,501 | | | | | $ | 6,064 | | | | | $ | 8,556 | | | | | $ | 12,742 | | | | | $ | 12,599 | | |
Number of months in period (in whole units) | | | | | 9 | | | | | | 9 | | | | | | 12 | | | | | | 12 | | | | | | 12 | | |
Total RPU Per Month (in whole dollars) | | | | $ | 1,389 | | | | | $ | 674 | | | | | $ | 713 | | | | | $ | 1,062 | | | | | $ | 1,050 | | |
| | | Nine Months Ended September 30, | | | Years Ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
| | | (in millions, except where noted) | | |||||||||||||||||||||||||||
Depreciation Per Unit Per Month: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation of revenue earning vehicles and lease charges | | | | $ | 420 | | | | | $ | 1,280 | | | | | $ | 1,597 | | | | | $ | 2,096 | | | | | $ | 2,126 | | |
Foreign currency adjustment(a) | | | | | 2 | | | | | | 21 | | | | | | 1 | | | | | | — | | | | | | (19) | | |
Adjusted depreciation of revenue earning vehicles and lease charges | | | | $ | 422 | | | | | $ | 1,301 | | | | | $ | 1,598 | | | | | $ | 2,096 | | | | | $ | 2,107 | | |
Average Vehicles (in whole units) | | | | | 420,753 | | | | | | 593,145 | | | | | | 540,340 | | | | | | 715,602 | | | | | | 687,300 | | |
Depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars) | | | | $ | 1,003 | | | | | $ | 2,193 | | | | | $ | 2,957 | | | | | $ | 2,929 | | | | | $ | 3,066 | | |
Number of months in period (in whole units) | | | | | 9 | | | | | | 9 | | | | | | 12 | | | | | | 12 | | | | | | 12 | | |
Depreciation Per Unit Per Month (in whole dollars) | | | | $ | 111 | | | | | $ | 244 | | | | | $ | 246 | | | | | $ | 244 | | | | | $ | 255 | | |
| | | Nine Months Ended September 30, | | | Years Ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
Vehicle Utilization: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Transaction Days (in thousands) | | | | | 88,023 | | | | | | 81,813 | | | | | | 107,299 | | | | | | 205,998 | | | | | | 199,880 | | |
Average Vehicles (in whole units) | | | | | 420,753 | | | | | | 593,145 | | | | | | 540,340 | | | | | | 715,602 | | | | | | 687,300 | | |
Number of days in period (in whole units) | | | | | 273 | | | | | | 274 | | | | | | 366 | | | | | | 365 | | | | | | 365 | | |
Available Car Days (in thousands) | | | | | 114,866 | | | | | | 162,522 | | | | | | 197,764 | | | | | | 261,195 | | | | | | 250,865 | | |
Vehicle Utilization | | | | | 77% | | | | | | 50% | | | | | | 54% | | | | | | 79% | | | | | | 80% | | |
| | | As of September 30, 2021 | | |||
| | | (in millions, except per share data) | | |||
Cash and cash equivalents(1) | | | | $ | 2,703 | | |
Debt: | | | | | | | |
Vehicle Debt(2) | | | | $ | 7,241 | | |
Unamortized Debt Issuance Costs and Net (Discount) Premium | | | | | (34) | | |
Total Vehicle Debt | | | | | 7,207 | | |
Non-Vehicle Debt: | | | | | | | |
Term B Loan(3) | | | | | 1,297 | | |
Term C Loan(3) | | | | | 245 | | |
Revolving Loan Facility(3)(4) | | | | | — | | |
Unamortized Debt Issuance Costs and Net (Discount) Premium | | | | | (45) | | |
Other Non-Vehicle Debt | | | | | 14 | | |
Total Non-Vehicle Debt | | | | | 1,511 | | |
Total Debt | | | | | 8,718 | | |
Public Warrants(5) | | | | | 783 | | |
Mezzanine Equity: | | | | | | | |
Series A preferred stock (par value $0.01 per share; 1,500,000 shares issued and outstanding)(6) | | | | | 1,433 | | |
Stockholders’ Equity: | | | | | | | |
Preferred Stock (par value $0.01 per share; 100,000,000 shares authorized; no shares issued and outstanding) | | | | | — | | |
Common stock (par value $0.01 per share; 1,000,000,000 shares authorized; 471,528,459 shares issued and outstanding)(7) | | | | | 5 | | |
Additional paid-in-capital | | | | | 6,482 | | |
Accumulated deficit | | | | | (2,055) | | |
Accumulated other comprehensive loss | | | | | (226) | | |
Stockholders’ equity attributable to Hertz Global(5) | | | | | 4,206 | | |
Noncontrolling interests | | | | | 12 | | |
Total stockholders’ equity | | | | | 4,218 | | |
Total capitalization | | | | $ | 15,152 | | |
| | | Shares Beneficially Owned(1) | | |||||||||
Name | | | Number | | | Percent | | ||||||
5% Stockholders | | | | | | | | | | | | | |
CK Amarillo LP(2) | | | | | 196,673,104 | | | | | | 41.5% | | |
Executive Officers and Directors | | | | | | | | | | | | | |
M. Gregory O’Hara | | | | | — | | | | | | — | | |
Thomas Wagner | | | | | — | | | | | | — | | |
Christopher Lahoud | | | | | — | | | | | | — | | |
Colin Farmer | | | | | — | | | | | | — | | |
Jennifer Feikin | | | | | — | | | | | | — | | |
Mark Fields | | | | | — | | | | | | — | | |
Vincent Intrieri(3) | | | | | 42,367 | | | | | | * | | |
Evelina Vougessis Machas | | | | | — | | | | | | — | | |
Andrew Shannahan | | | | | — | | | | | | — | | |
Paul Stone(3) | | | | | 4,012 | | | | | | * | | |
Kenny Cheung | | | | | — | | | | | | — | | |
Angela I. Brav | | | | | — | | | | | | — | | |
M. David Galainena | | | | | — | | | | | | — | | |
All executive officers and directors as a group (19 persons)(3) | | | | | 49,032 | | | | | | * | | |
| | | Shares | | | % | | ||||||||||||||||||||||||||||||
| | | Beneficially Owned Before Offering | | | To be Sold in Offering | | | Maximum Number to be Sold Upon Exercise of the Underwriters’ Option | | | Beneficially Owned Before Offering | | | Beneficially Owned After Offering | | | Beneficially Owned After Offering Assuming Exercise in Full of the Underwriters’ Option | | ||||||||||||||||||
CK Amarillo, LP(1) | | | | | 196,673,104 | | | | | | 14,949,568 | | | | | | 5,565,000 | | | | | | 41.5% | | | | | | 38.4% | | | | | | 37.2% | | |
Cougar Capital(2) | | | | | 110,000 | | | | | | 73,390 | | | | | | — | | | | | | * | | | | | | * | | | | | | * | | |
Diameter Capital(3) | | | | | 1,500,000 | | | | | | — | | | | | | — | | | | | | * | | | | | | * | | | | | | * | | |
Eaton Vance(4) | | | | | 3,034,104 | | | | | | — | | | | | | — | | | | | | * | | | | | | * | | | | | | * | | |
Fortress(5) | | | | | 12,380,406 | | | | | | 5,137,308 | | | | | | — | | | | | | 2.6% | | | | | | 1.5% | | | | | | 1.5% | | |
HBK(6) | | | | | 4,867,000 | | | | | | — | | | | | | — | | | | | | 1.0% | | | | | | 1.0% | | | | | | 1.0% | | |
HG Vora(7) | | | | | 14,000,000 | | | | | | 10,274,617 | | | | | | — | | | | | | 3.0% | | | | | | * | | | | | | * | | |
Kingstreet(8) | | | | | 11,199,384 | | | | | | — | | | | | | — | | | | | | 2.4% | | | | | | 2.4% | | | | | | 2.4% | | |
Livello Capital(9) | | | | | 319,481 | | | | | | — | | | | | | — | | | | | | * | | | | | | * | | | | | | * | | |
Oaktree(10) | | | | | 17,692,340 | | | | | | 2,335,100 | | | | | | — | | | | | | 3.7% | | | | | | 3.2% | | | | | | 3.2% | | |
Paloma(11) | | | | | 1,600,000 | | | | | | 660,511 | | | | | | — | | | | | | * | | | | | | * | | | | | | * | | |
Sachem Head(12) | | | | | 8,210,268 | | | | | | 3,669,506 | | | | | | — | | | | | | 1.7% | | | | | | 1.0% | | | | | | 1.0% | | |
| SEC registration fee | | | | $ | 114,696 | | |
| FINRA filing fee | | | | | 186,093 | | |
| Accounting fees and expenses | | | | | 395,000 | | |
| Transfer agent fees and expenses | | | | | 25,000 | | |
| Legal fees and expenses | | | | | 950,000 | | |
| Printing fees and expenses | | | | | 50,000 | | |
| Advisory fees | | | | | 3,000,000 | | |
| Miscellaneous fees and expenses | | | | | 100,000 | | |
| Total | | | | $ | 4,820,789 | | |
| Signature/Name | | | Position | | | Date | |
| * Mark Fields | | | Interim Chief Executive Officer and Director (Principal Executive Officer) | | | November | |
| /s/ Kenny Cheung Kenny Cheung | | | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | | | November | |
| * Alexandra Brooks | | | Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) | | | November | |
| * M. Gregory O’Hara | | | Chairperson | | | November | |
| * Thomas Wagner | | | Vice-Chairperson | | | November | |
| Signature/Name | | | Position | | | Date | |
| * Christopher Lahoud | | | Preferred Stock Director | | | November | |
| * Colin Farmer | | | Director | | | November | |
| * Jennifer Feikin | | | Director | | | November | |
| * Vincent Intrieri | | | Director | | | November | |
| * Evelina Vougessis Machas | | | Director | | | November | |
| * Andrew Shannahan | | | Director | | | November | |
| *By: /s/ Kenny Cheung Attorney-in-Fact | | | |