PARK RIDGE, NJ, Dec 31, 2010 (MARKETWIRE via COMTEX) --
Hertz Global Holdings, Inc. (the "Company") (NYSE: HTZ) today
announced that commencing January 1, 2011, the Company's $474,755,000
Aggregate Principal Amount of 5.25% Convertible Senior Notes Due 2014
(the "Notes") will be convertible by holders of the Notes. This
conversion right has been triggered because the Company's closing
common stock price per share exceeded $10.77 for at least 20 trading
days during the 30 consecutive trading day period ending on December
31, 2010. The Notes will continue to be convertible until March 31,
2011, and may be convertible thereafter, if one or more of the
conversion conditions specified in the Indenture, dated as of May 27,
2009 (the "Indenture"), by and between the Company and Wells Fargo
Bank, National Association is satisfied during future measurement
periods.
If conversion requests are received, the settlement of the Notes will
be paid pursuant to the terms of the Indenture. The Company's policy
has been and continues to be to settle conversions of the Notes using
a combination of cash and shares of the Company's common stock, with
the cash portion being paid with a fixed dollar amount equal to
$1,000 per $1,000 in principal amount on the Notes (assuming the
conversion value is at least equal to the issue price of the Notes).
Wells Fargo Bank, National Association, is the Trustee for the
holders of the Notes and Conversion Agent under the Indenture. All
questions relating to the mechanics of the conversion for the notes
should be directed to Martin Reed at Wells Fargo Bank, National
Association, telephone number 212.515.5244 and address 45 Broadway,
14th Floor, New York, NY 10006.
This press release is only a summary of certain provisions of the
Notes and the Indenture. A complete explanation of the conversion
rights of holders of the Notes, as well as the procedures required to
convert Notes, is set forth in the Indenture. All holders are urged
to review the conversion provisions contained in the Notes and the
Indenture in its entirety.
About Hertz
Hertz is the world's largest general use car rental brand, operating
from approximately 8,500 locations in 146 countries worldwide. Hertz
is the number one airport car rental brand in the U.S. and at 81
major airports in Europe, operating both corporate and licensee
locations in cities and airports in North America, Europe, Latin
America, Asia, Australia and New Zealand. In addition, the Company
has licensee locations in cities and airports in Africa and the
Middle East. Product and service initiatives such as Hertz #1 Club
Gold(R), NeverLost(R) customized, onboard navigation systems, SIRIUS
XM Satellite Radio, and unique cars and SUVs offered through the
Company's Prestige, Fun and Green Collections, set Hertz apart from
the competition. In 2008, the Company launched Connect by Hertz,
entering the global car sharing market in London, New York City and
Paris. Hertz also operates one of the world's largest equipment
rental businesses, Hertz Equipment Rental Corporation, offering a
diverse line of equipment, including tools and supplies, as well as
new and used equipment for sale, to customers ranging from major
industrial companies to local contractors and consumers from
approximately 320 branches in the United States, Canada, China,
France, Spain and Italy.
Forward-Looking Statements
Certain statements contained in this press release include
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Examples of forward-looking
statements include information concerning the Company's outlook,
anticipated revenues and results of operations, as well as any other
statement that does not directly relate to any historical or current
fact. These forward-looking statements often include words such as
"believe," "expect," "project," "anticipate," "intend," "plan,"
"estimate," "seek," "will," "may," "would," "should," "could,"
"forecasts" or similar expressions. These statements are based on
certain assumptions that the Company has made in light of its
experience in the industry as well as its perceptions of historical
trends, current conditions, expected future developments and other
factors that the Company believes are appropriate in these
circumstances. We believe these judgments are reasonable, but you
should understand that these statements are not guarantees of
performance or results, and our actual results could differ
materially from those expressed in the forward-looking statements due
to a variety of important factors, both positive and negative.
Among other items, such factors could include: overall strength and
stability of general economic conditions, both in the United States
and in global markets; levels of travel demand, particularly with
respect to airline passenger traffic in the United States and in
global markets; significant changes in the competitive environment,
including as a result of industry consolidation, and the effect of
competition in our markets, including on our pricing policies or use
of incentives; our ability to achieve cost savings and efficiencies
and realize opportunities to increase productivity and profitability;
an increase in our fleet costs as a result of an increase in the cost
of new vehicles and/or a decrease in the price at which we dispose of
used vehicles either in the used vehicle market or under repurchase
or guaranteed depreciation programs; our ability to accurately
estimate future levels of rental activity and adjust the size of our
fleet accordingly; our ability to maintain sufficient liquidity and
the availability to us of additional or continued sources of
financing for our revenue earning equipment and to refinance our
existing indebtedness; safety recalls by the manufacturers of our
vehicles and equipment; a major disruption in our communication or
centralized information networks; financial instability of the
manufacturers of our vehicles and equipment; any impact on us from
the actions of our licensees, dealers and independent contractors;
our ability to maintain profitability during adverse economic cycles
and unfavorable external events (including war, terrorist acts,
natural disasters and epidemic disease); shortages of fuel and
increases or volatility in fuel costs; our ability to successfully
integrate future acquisitions and complete future dispositions; costs
and risks associated with litigation; risks related to our
indebtedness, including our substantial amount of debt and our
ability to incur substantially more debt; our ability to meet the
financial and other covenants contained in our senior credit
facilities, our outstanding unsecured senior notes and certain
asset-backed funding arrangements; changes in accounting principles,
or their application or interpretation, and our ability to make
estimates and the assumptions underlying the estimates, which could
have an effect on earnings; changes in the existing, or the adoption
of new laws, regulations, policies or other activities of
governments, agencies and similar organizations where such actions
may affect our operations, the cost thereof or applicable tax rates;
the effect of tangible and intangible asset impairment charges; and
the impact of our derivative instruments, which can be affected by
fluctuations in interest rates; our exposure to fluctuations in
foreign exchange rates. Additional information concerning these and
other factors can be found in our filings with the Securities and
Exchange Commission, including our most recent Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
The Company therefore cautions you against relying on these
forward-looking statements. All forward-looking statements
attributable to the Company or persons acting on the Company's behalf
are expressly qualified in their entirety by the foregoing cautionary
statements. All such statements speak only as of the date made, and
the Company undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE: The Hertz Corporation
