Herc Holdings

Capital structure

$4.8bn total debt

InstrumentCouponMaturityAmountSource
Amendment No. 1 Term Loans · Senior SecuredTerm SOFR + 1.75% (or Base Rate + 0.75%)USD 750msource ↗
ABL Agreement · Senior SecuredUSD 4.0bnsource ↗

Covenant analysis

CovenantTermvs marketSource
Repricing Premium · Call Protection1.00% premium on principal amount repaid/amended within 6 months of Amendment No. 1 Effective Datemarket 1% vs call protection median 1% (n=12)source ↗
Limitation on Indebtedness – 2025-I Senior Notes Indenture Cap · Debt IncurrenceAggregate principal amount not to exceed $2,750,000,000loose $2.75bn vs debt incurrence median $875m (n=7)source ↗
Limitation on Indebtedness – 2024 Senior Notes Indenture Cap · Debt IncurrenceAggregate principal amount not to exceed $800,000,000market $800m vs debt incurrence median $875m (n=7)source ↗
Limitation on Indebtedness – 2025-II Senior Notes Indenture Cap · Debt IncurrenceAggregate principal amount not to exceed $1,200,000,000loose $1.2bn vs debt incurrence median $875m (n=7)source ↗
Limitation on Indebtedness – 2019 Senior Notes Indenture Cap · Debt IncurrenceAggregate principal amount not to exceed $1,200,000,000loose $1.2bn vs debt incurrence median $875m (n=7)source ↗
EBITDA Add-back Cap – Restructuring Charges and Synergies · EBITDA DefinitionAggregate of restructuring charges and cost savings/synergies add-backs not to exceed 20% of Consolidated EBITDA for any periodmarket 20% vs ebitda definition median 20% (n=6)source ↗
Limitation on Indebtedness – General Incurrence Test · Debt IncurrenceFixed Charge Coverage Ratio at least 2.00:1.00 on pro forma basissource ↗
Limitation on Restricted Payments – Total Leverage Ratio Basket · Restricted PaymentsTotal Indebtedness Leverage Ratio not to exceed 3.00:1.00 after giving effect to such Restricted Paymenttight 3x vs leverage median 4x (n=99)source ↗
Limitation on Indebtedness – Equipment/Capital Lease/Purchase Money · Debt IncurrenceGreater of $1,400,000,000 and 15.5% of Consolidated Tangible Assetssource ↗
Limitation on Liens – Senior Secured Leverage Test · LiensSenior Secured Indebtedness Leverage Ratio not to exceed 3.00:1.00tight 3x vs leverage median 4x (n=99)source ↗
Asset Disposition – Cash Consideration Requirement · Asset DispositionsAt least 75% of consideration must be cash or Cash Equivalents for dispositions exceeding $120,000,000source ↗
Transactions with Affiliates – Threshold · Affiliate TransactionsTransactions in excess of $60,000,000 must be on arm's-length termssource ↗
Limitation on Restricted Payments – Market Cap Basket · Restricted Payments6.0% of Market Capitalization per fiscal yeartight 6% vs basket median 20% (n=122)source ↗
Limitation on Restricted Payments – General Basket · Restricted PaymentsGreater of $180,000,000 and 2% of Consolidated Tangible Assets in aggregate during the termtight 2% vs basket median 20% (n=122)source ↗
Limitation on Indebtedness – General Basket · Debt IncurrenceGreater of $900,000,000 and 10.0% of Consolidated Tangible Assetstight 10% vs basket median 20% (n=122)source ↗
Limitation on Liens – General Basket · LiensGreater of $900,000,000 and 10.0% of Consolidated Tangible Assetstight 10% vs basket median 20% (n=122)source ↗
Available Incremental Amount – Fixed Basket · Incremental DebtGreater of $1,780,000,000 and 20% of Consolidated Tangible Assets (plus other components)market 20% vs basket median 20% (n=122)source ↗
Fixed Charge Coverage Ratio – Incremental Unsecured Test · Financial Covenant / IncurrenceNo less than 2.00:1.00market 2x vs coverage median 1.7x (n=40)source ↗
Unrestricted Subsidiary Designation – Fixed Charge Coverage Ratio Test · Restricted/Unrestricted SubsidiaryFixed Charge Coverage Ratio no less than 2.00:1.00 on pro forma basis at time of designationmarket 2x vs coverage median 1.7x (n=40)source ↗
Senior Secured Indebtedness Leverage Ratio – Incremental Secured Test · Financial Covenant / IncurrenceNo greater than 3.00:1.00tight 3x vs leverage median 4x (n=99)source ↗
Applicable Margin – Amendment No. 1 Term Loans (Term SOFR) · Pricing1.75% per annummarket 1.75% vs pricing median 1.375% (n=38)source ↗