Hertz to raise $250M through exchangeable notes

Estero-based Hertz Global Holdings announced plans to raise $250 million by issuing exchangeable senior notes due 2030. These are a type of debt investors can later convert into Hertz stock or cash, giving the company more flexibility. Hertz will use the proceeds to enter into capped call transactions — financial tools that protect existing shareholders from seeing their shares diluted if the notes are converted — and to help pay down older debt that comes due in 2026. The notes will mature in 2030, unless converted or repaid sooner. While the offering is structured for institutional investors, for the public it signals Hertz is restructuring debt, managing interest costs and shoring up its long-term finances.