HERTZ GLOBAL HOLDINGS, INCHTZ
HERTZ GLOBAL HOLDINGS, INC Debt Disclosure
Debt
The Company's debt, including its available credit facilities, consists of the following ($ in millions) as of December 31, 2025 and 2024:
| Facility | Weighted-Average Interest Rate as of December 31, 2025 | Fixed or Floating Interest Rate | Maturity | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||
| Non-Vehicle Debt | ||||||||||||||||||||||||||||||||
First Lien RCF(1) | 8.28% | Floating | 3/2028 | $ | 395 | $ | 175 | |||||||||||||||||||||||||
| Term B Loan | 7.52% | Floating | 6/2028 | 1,242 | 1,255 | |||||||||||||||||||||||||||
| Incremental Term B Loan | 7.66% | Floating | 6/2028 | 490 | 495 | |||||||||||||||||||||||||||
| Term C Loan | 7.52% | Floating | 6/2028 | 245 | 245 | |||||||||||||||||||||||||||
| First Lien Senior Notes | 12.63% | Fixed | 7/2029 | 1,250 | 1,250 | |||||||||||||||||||||||||||
Exchangeable Notes Due 2029(2) | 8.00% | Fixed | 7/2029 | 271 | 250 | |||||||||||||||||||||||||||
Exchangeable Notes Due 2030(3) | 5.50% | Fixed | 10/2030 | 425 | — | |||||||||||||||||||||||||||
Senior Notes Due 2026(4) | 4.63% | Fixed | 12/2026 | 200 | 500 | |||||||||||||||||||||||||||
| Senior Notes Due 2029 | 5.00% | Fixed | 12/2029 | 1,000 | 1,000 | |||||||||||||||||||||||||||
Other Non-Vehicle Debt(5)(6) | 9.02% | Fixed | 6/2065 | 6 | — | |||||||||||||||||||||||||||
Fair Value of the Exchange Features 2029(7) | N/A | N/A | N/A | 78 | 61 | |||||||||||||||||||||||||||
Fair Value of the Exchange Features 2030(8) | N/A | N/A | N/A | 54 | — | |||||||||||||||||||||||||||
Unamortized Debt Issuance Costs(9) and Net (Discount) Premium(10)(11) | (231) | (127) | ||||||||||||||||||||||||||||||
| Total Non-Vehicle Debt | 5,425 | 5,104 | ||||||||||||||||||||||||||||||
| Vehicle Debt | ||||||||||||||||||||||||||||||||
| HVF III U.S. ABS Program | ||||||||||||||||||||||||||||||||
| HVF III U.S. Vehicle Variable Funding Notes | ||||||||||||||||||||||||||||||||
HVF III Series 2021-A Class A(12) | 5.48% | Floating | 5/2027 | 1,237 | 2,162 | |||||||||||||||||||||||||||
HVF III Series 2021-A Class B(12) | 9.28% | Fixed | 8/2027 | 300 | 188 | |||||||||||||||||||||||||||
| 1,537 | 2,350 | |||||||||||||||||||||||||||||||
| HVF III U.S. Vehicle Medium Term Notes | ||||||||||||||||||||||||||||||||
HVF III Series 2021-2(12) | 2.12% | Fixed | 12/2026 | 2,000 | 2,000 | |||||||||||||||||||||||||||
HVF III Series 2022-1(12) | N/A | N/A | N/A | — | 750 | |||||||||||||||||||||||||||
HVF III Series 2022-2(12) | 2.78% | Fixed | 6/2027 | 750 | 750 | |||||||||||||||||||||||||||
| Facility | Weighted-Average Interest Rate as of December 31, 2025 | Fixed or Floating Interest Rate | Maturity | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||
HVF III Series 2022-4(12) | N/A | N/A | N/A | — | 667 | |||||||||||||||||||||||||||
HVF III Series 2022-5(12) | 4.39% | Fixed | 9/2027 | 364 | 364 | |||||||||||||||||||||||||||
HVF III Series 2023-1(12) | 6.17% | Fixed | 6/2026 | 500 | 500 | |||||||||||||||||||||||||||
HVF III Series 2023-2(12) | 6.30% | Fixed | 9/2028 | 300 | 300 | |||||||||||||||||||||||||||
HVF III Series 2023-3(12) | 6.46% | Fixed | 2/2027 | 500 | 500 | |||||||||||||||||||||||||||
HVF III Series 2023-4(12) | 6.66% | Fixed | 3/2029 | 500 | 500 | |||||||||||||||||||||||||||
HVF III Series 2024-1(12) | 5.98% | Fixed | 1/2028 | 375 | 375 | |||||||||||||||||||||||||||
HVF III Series 2024-2(12) | 6.03% | Fixed | 1/2030 | 375 | 375 | |||||||||||||||||||||||||||
HVF III Series 2025-1(12) | 5.36% | Fixed | 9/2028 | 500 | — | |||||||||||||||||||||||||||
HVF III Series 2025-2(12) | 5.61% | Fixed | 9/2030 | 500 | — | |||||||||||||||||||||||||||
HVF III Series 2025-3(12) | 5.54% | Fixed | 12/2028 | 375 | — | |||||||||||||||||||||||||||
HVF III Series 2025-4(12) | 5.92% | Fixed | 12/2030 | 310 | — | |||||||||||||||||||||||||||
HVF III Series 2025-5(12) | 5.01% | Fixed | 5/2029 | 450 | — | |||||||||||||||||||||||||||
HVF III Series 2025-6(12) | 5.31% | Fixed | 5/2031 | 550 | — | |||||||||||||||||||||||||||
| 8,349 | 7,081 | |||||||||||||||||||||||||||||||
| Vehicle Debt - Other | ||||||||||||||||||||||||||||||||
European ABS(12) | 4.48% | Floating | 4/2027 | 965 | 1,037 | |||||||||||||||||||||||||||
Hertz Canadian Securitization(12) | 4.11% | Floating | 4/2027 | 307 | 292 | |||||||||||||||||||||||||||
Australian Securitization(12) | 5.20% | Floating | 6/2027 | 228 | 207 | |||||||||||||||||||||||||||
| New Zealand RCF | 5.49% | Floating | 8/2027 | 64 | 63 | |||||||||||||||||||||||||||
| U.K. Financing Facility | N/A | N/A | N/A | — | 153 | |||||||||||||||||||||||||||
| U.K. ABS | 5.79% | Floating | 3/2028 | 109 | — | |||||||||||||||||||||||||||
Other Vehicle Debt(13) | 6.26% | Floating | 1/2026 - 7/2028 | 120 | 97 | |||||||||||||||||||||||||||
| 1,793 | 1,849 | |||||||||||||||||||||||||||||||
| Unamortized Debt Issuance Costs and Net (Discount) Premium | (50) | (49) | ||||||||||||||||||||||||||||||
| Total Vehicle Debt | 11,629 | 11,231 | ||||||||||||||||||||||||||||||
| Total Debt | $ | 17,054 | $ | 16,335 | ||||||||||||||||||||||||||||
N/A - Not applicable
(1)In January 2026, the Company made a payment for the stipulated amount of $346 million in connection with the case captioned Wells Fargo Bank, National Association v. The Hertz Corporation, et. al., as further disclosed in Note 15, "Contingencies and Off-Balance Sheet Commitments," which was funded through borrowings under the First Lien RCF.
(2)The effective interest rate of the Exchangeable Notes Due 2029, inclusive of the bifurcated Exchange Features 2029, as defined and disclosed in Note 13, "Fair Value Measurements," and PIK interest, was approximately 16.4% and 15.0% as of December 31, 2025 and 2024, respectively.
(3)The effective interest rate of the Exchangeable Notes Due 2030, inclusive of the bifurcated Exchange Feature 2030, as disclosed below, was approximately 12.0% as of December 31, 2025.
(4)In December 2025, Hertz redeemed $300 million aggregate amount of the principal outstanding.
(5)Other non-vehicle debt as of December 31, 2025 is comprised of $6 million in financial liabilities recognized from the sales of certain non-vehicle capital assets, as disclosed in Note 3, "Divestitures."
(6)Reflects the effective interest rate of other non-vehicle debt.
(7)Reflects the fair value of the Exchange Features 2029, as defined and disclosed in Note 13, "Fair Value Measurements."
(8)Reflects the fair value of the Exchange Feature 2030, as disclosed in Note 13, "Fair Value Measurements."
(9)Includes unamortized debt issuance costs of $8 million and $20 million associated with the Exchangeable Notes Due 2029 and Exchangeable Notes Due 2030, respectively, as of December 31, 2025, and $9 million associated with the Exchangeable Notes Due 2029 as of December 31, 2024.
(10)Includes $79 million and $103 million as of December 31, 2025 of unamortized discounts associated with the initial recognition of the Exchange Features 2029, as defined and disclosed in Note 13, "Fair Value Measurements," and the Exchange Feature 2030, respectively, and $68 million as of December 31, 2024, associated with the initial recognition of the Exchange Feature 2029, as defined Note 13, "Fair Value Measurements.
(11)Includes $4 million of unamortized debt discount associated with the Exchangeable Notes Due 2029 as of December 31, 2025 and 2024.
(12) Maturity reference is to the earlier "expected final maturity date" as opposed to the subsequent "legal final maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness originally expect the outstanding principal of the relevant indebtedness to be repaid in full. The legal final maturity date is the date on which the outstanding principal of the relevant indebtedness is legally due and payable in full.
(13) Other vehicle debt is primarily comprised of $105 million and $94 million in finance lease obligations as of December 31, 2025 and 2024, respectively.
Non-Vehicle Debt
First Lien Credit Agreement / First Lien RCF
First Lien RCF: As of December 31, 2025, ABR Loans and Canadian Prime Rate Loans, as defined under the First Lien Credit Agreement, bear interest at the relevant benchmark rate plus an applicable margin of 2.50%. In addition, the pricing for U.S. dollar, Eurodollar, Sterling and Canadian dollar loans are equal to a local currency benchmark plus a margin of 3.50%. The above referenced margins are dependent upon Hertz's consolidated total corporate leverage ratio, as defined in the First Lien Credit Agreement. The First Lien RCF matures in March 2028.
On April 1 2025, Amendment No. 8 expired. Amendment No. 8 contained a minimum liquidity covenant of $400 million for each month ending in the second and third quarters of 2024 and $500 million for each month ending in the fourth quarter of 2024 and the first quarter of 2025. Amendment No. 8 also temporarily amended Hertz's compliance with the First Lien Ratio, as defined within the First Lien Credit Agreement and may be materially different than Adjusted Corporate EBITDA presented in Part II, Item 7 of this 2025 Annual Report, to require a ratio of less than or equal to 5.0x in the second and third quarters of 2024 and 4.75x in the fourth quarter of 2024 and first quarter of 2025. Upon expiration of Amendment No. 8, the First Lien Ratio reverted to a requirement of less than or equal to 3.0x in the first and last quarters of the calendar year and 3.5x in the second and third quarters of the calendar year.
In May 2025, Hertz entered into Amendment No. 10, which provided for the extension of the maturity date of $1.7 billion of commitments under Hertz's existing $2.0 billion First Lien RCF from June 2026 to March 2028, subject to a springing maturity date (as defined in the First Lien Credit Agreement) and made certain other amendments to the First Lien Credit Agreement. Hertz will have access to up to $2.0 billion under the First Lien RCF until June 2026, and thereafter the aggregate amount of commitments under the First Lien RCF will be $1.7 billion until March 2028, after giving effect to the terms of Amendment No. 10.
Amendment No. 10 also contains a minimum liquidity covenant, consistent with that of Amendment No. 8, which requires $400 million for each month ending in the second and third quarters of the calendar year and $500 million for each month ending in the first and fourth quarter of the calendar year. Amendment No. 10 also adds certain limitations, including with respect to Restricted Payments and Permitted Investments (each as defined in the First Lien Credit Agreement). Under the terms of Amendment No. 10, the minimum liquidity covenant and certain restrictions will sunset upon the end of the Relief Period (as defined in the First Lien Credit Agreement).
Exchangeable Notes Due 2029
In June 2024, Hertz issued $250 million in aggregate principal amount of the Exchangeable Notes Due 2029. The Exchangeable Notes Due 2029 bear PIK interest payable semi-annually in arrears on January 15 and July 15, which began in January 2025, whereby PIK interest increases the principal amount of the Exchangeable Notes Due 2029 upon each Semi-annual PIK Event. In connection with the Semi-annual PIK Event in the first and third
quarters of 2025, the Company increased the principal amount of the Exchangeable Notes Due 2029 by $11 million and $10 million, respectively.
Upon issuance, the Company bifurcated the Exchange Feature 2029, as defined in Note 13, "Fair Value Measurements," from the Exchangeable Notes Due 2029 for accounting purposes utilizing applicable guidance. As a result, the Company recognized a debt discount of $68 million within non-vehicle debt, representing the initial fair value of the Exchange Feature 2029. Additionally, for each Semi-annual PIK Event, the Company bifurcates the Exchange Feature 2029 PIK from the Exchangeable Notes Due 2029 for accounting purposes utilizing applicable guidance. As a result, the Company has recognized a debt discount of $11 million within non-vehicle debt representing the initial fair values. Refer to Note 13, "Fair Value Measurements," for further details.
Prior to April 15, 2029, the Exchangeable Notes Due 2029 will be exchangeable only upon satisfaction of certain conditions and during certain periods. Thereafter, the Exchangeable Notes Due 2029 will be exchangeable at any time until the close of business on the second scheduled trading day immediately preceding the Maturity Date 2029. The Exchangeable Notes Due 2029 will be exchangeable by holders into shares of Hertz Global common stock, cash or a combination of common stock and cash, at the Company's election, at an initial exchange rate of 150.9388 shares per $1,000 principal amount of Exchangeable Notes Due 2029, corresponding to an initial exchange price of $6.6252 per share, subject to adjustment upon the occurrence of certain events.
The Company may redeem the Exchangeable Notes Due 2029 on or after July 20, 2027 and on or prior to the 31st scheduled trading day immediately preceding the Maturity Date 2029, if the last reported sale price per share of Hertz Global common stock has been at least 250% of the exchange price for the Exchangeable Notes Due 2029 for certain specified periods. The Company may redeem all (but not part) of the Exchangeable Notes Due 2029 at a cash redemption price equal to the initial principal amount of the Exchangeable Notes Due 2029 to be redeemed plus PIK interest on such Exchangeable Notes Due 2029 for each interest payment date occurring on or prior to the redemption date plus accrued and unpaid PIK interest on such Exchangeable Notes Due 2029 to, but not including, the redemption date.
The net carrying amount of the Exchangeable Notes Due 2029 consists of the following:
| (In millions) | December 31, 2025 | December 31, 2024 | |||||||||
| Principal | $ | 250 | $ | 250 | |||||||
| Non-cash PIK interest | 21 | — | |||||||||
Unamortized debt discounts and issuance costs(1) | (12) | (13) | |||||||||
Unamortized discounts associated with the Exchange Features 2029(2) | (67) | (65) | |||||||||
Fair value of the Exchange Features 2029(3) | 78 | 61 | |||||||||
| Net carrying amount | $ | 270 | $ | 233 | |||||||
(1) Debt issuance costs are amortized to non-vehicle interest expense over the term of the Exchangeable Notes Due 2029 using the effective interest method.
(2) Reflects the unamortized discount associated with the Exchange Features 2029, as defined in Note 13, "Fair Value Measurements," net of accretive interest which is amortized to non-vehicle interest expense over the term of the Exchangeable Notes Due 2029 using the effective interest method.
(3) As defined and further disclosed in Note 13, "Fair Value Measurements."
Interest expense recognized for the Exchangeable Notes Due 2029 consists of the following:
| Year ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Non-cash PIK interest | $ | 21 | $ | 10 | $ | — | |||||||||||
| Amortization of debt discount and debt issuance costs | 2 | 1 | — | ||||||||||||||
| Accretive interest | 9 | 3 | — | ||||||||||||||
(Gain) loss on fair value of the Exchange Features 2029(1) | 6 | (7) | — | ||||||||||||||
| Total | $ | 38 | $ | 7 | $ | — | |||||||||||
(1) As defined and further disclosed in Note 13, "Fair Value Measurements."
Exchangeable Notes Due 2030
In September 2025, Hertz issued $425 million in aggregate principal amount of the Exchangeable Notes Due 2030, which are guaranteed by Hertz Holdings, Rental Car Intermediate Holdings, LLC and each of Hertz's existing and future, direct and indirect, U.S. subsidiaries that are guarantors under the First Lien Credit Agreement. The Exchangeable Notes Due 2030 bear interest at a rate of 5.500% per year, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2026. The Exchangeable Notes Due 2030 mature on October 1, 2030, unless earlier repurchased, redeemed or exchanged, in accordance with their terms prior to the Maturity Date 2030.
Prior to July 1, 2030, the Exchangeable Notes Due 2030 will be exchangeable only upon satisfaction of certain conditions and during certain periods. Thereafter, the Exchangeable Notes Due 2030 will be exchangeable at any time until the close of business on the second scheduled trading day immediately preceding the Maturity Date 2030. The Exchangeable Notes Due 2030 will be exchangeable by holders into shares of Hertz Global common stock, cash or a combination of common stock and cash, at Hertz's election, at an initial exchange rate of 108.2808 shares per $1,000 principal amount of Exchangeable Notes Due 2030, corresponding to an initial exchange price of $9.24 per share of Hertz Global common stock, subject to adjustment upon the occurrence of certain events.
Hertz may not redeem the Exchangeable Notes Due 2030 prior to October 6, 2028. On or after October 6, 2028 and on or prior to the 26th scheduled trading day immediately preceding the Maturity Date 2030, if the last reported sale price per share of Hertz Global common stock has been at least 130% of the exchange price for the Exchangeable Notes Due 2030 for certain specified periods and certain other conditions are satisfied, Hertz may redeem all or a portion (subject to certain limitations) of the Exchangeable Notes Due 2030. The redemption will be at a cash redemption price equal to the principal amount of the Exchangeable Notes Due 2030 to be redeemed plus accrued and unpaid interest on such Exchangeable Notes Due 2030 to, but not including, the redemption date.
Upon issuance of the Exchangeable Notes Due 2030, the Company bifurcated the Exchange Feature 2030 from the Exchangeable Notes Due 2030 for accounting purposes utilizing applicable guidance. As a result, the Company recognized a debt discount of $103 million within non-vehicle debt, representing the initial fair value of the Exchange Feature 2030. Refer to Note 13, "Fair Value Measurements," for further details.
The net carrying amount of the Exchangeable Notes Due 2030 consists of the following:
| (In millions) | December 31, 2025 | December 31, 2024 | |||||||||
| Principal | $ | 425 | $ | — | |||||||
Unamortized debt issuance costs(1) | (20) | — | |||||||||
Unamortized discounts associated with the Exchange Feature 2030(2) | (99) | — | |||||||||
Fair value of the Exchange Feature 2030(3) | 54 | — | |||||||||
| Net carrying amount | $ | 360 | $ | — | |||||||
(1) Debt issuance costs are amortized to non-vehicle interest expense over the term of the Exchangeable Notes Due 2030 using the effective interest method.
(2) Reflects the unamortized discount associated with the Exchange Feature 2030, net of accretive interest which is amortized to non-vehicle interest expense over the term of the Exchangeable Notes Due 2030 using the effective interest method.
(3) As further disclosed in Note 13, "Fair Value Measurements."
Interest expense recognized for the Exchangeable Notes Due 2030 consists of the following:
| Year ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Contractual interest expense | $ | 6 | $ | — | $ | — | |||||||||||
| Amortization of debt issuance costs | 1 | — | — | ||||||||||||||
| Accretive interest | 4 | — | — | ||||||||||||||
(Gain) loss on fair value of Exchange Feature 2030(1) | (49) | — | — | ||||||||||||||
| Total | $ | (38) | $ | — | $ | — | |||||||||||
(1) As further disclosed in Note 13, "Fair Value Measurements."
Vehicle Debt
HVF III U.S. ABS Program
In June 2021, Hertz established the HVF III securitization platform (the "HVF III U.S. ABS Program") to facilitate its financing activities relating to vehicles used by Hertz in the U.S. vehicle rental operations. HVF III is the issuer of variable funding notes and medium-term notes under the HVF III U.S. ABS Program. HVF III entered into a base indenture that permits it to issue term and variable funding rental car asset-backed securities, secured by a collateral pool consisting primarily of the rental vehicles used in the Company's U.S. vehicle rental operations and the related incentive and repurchase program vehicle receivables. Within each series of HVF III U.S. Vehicle Medium Term Notes, the issued notes are subordinated based on class.
From time to time, Hertz or any of its subsidiaries (all affiliates of HVF III), at their discretion, may purchase and retain any part or portion of an issued notes’ series or class within a series under the HVF III U.S. ABS Program depending on market conditions and other factors at the time of issuance. In addition, any retained notes issued under the HVF III U.S. ABS Program may be sold to third parties at a subsequent date or may be sold and repurchased under the Repurchase Facilities, as disclosed below, in each case, depending on market conditions and other factors at the time.
References to the HVF III U.S. ABS Program include HVF III's U.S. Vehicle Variable Funding Notes and HVF III's U.S. Vehicle Medium Term Notes.
HVF III U.S. Vehicle Variable Funding Notes
In May 2025, HVF III amended the HVF III Series 2021-A Notes, which provided for the extension of the maturity date of $2.9 billion of aggregate commitments of Class A Notes from April 2026 to May 2027. In August 2025, $780 million in non-extending commitments were voluntarily terminated.
In June 2025, HVF III amended the HVF III Series 2021-A Notes to issue new Class B Notes in which aggregate commitments were increased from $188 million to $300 million and the maturity date was extended to June 2027. The Class B Notes are subordinate to the Class A Notes.
In August 2025, HVF III amended the HVF III Series 2021-A Notes to permit borrowings and repayments of principal under the Class B Notes and to allow for future issuance of a Class C tranche of notes.
HVF III U.S. Vehicle Medium Term Notes ("MTNs")
In March 2025, HVF III issued the Series 2025-1 (Class A, Class B, Class C and Class D) and Series 2025-2 Notes (Class A, Class B, Class C and Class D) each in aggregate principal amount of $500 million with maturity dates of September 2028 and September 2030, respectively.
In June 2025, HVF III issued the Series 2025-3 (Class A, Class B, Class C and Class D) and Series 2025-4 Notes (Class A, Class B, Class C and Class D) in aggregate principal amounts of $375 million and $310 million with maturity dates of December 2028 and December 2030, respectively.
In December 2025, HVF III issued the Series 2025-5 (Class A, Class B, Class C and Class D) and Series 2025-6 Notes (Class A, Class B, Class C and Class D) in aggregate principal amounts of $450 million and $550 million with maturity dates of May 2029 and May 2031, respectively.
There is subordination within each of the preceding series based on class.
Vehicle Debt-Other
European ABS
The European ABS is the primary vehicle financing facility for the Company's vehicle rental operations in France, the Netherlands, Germany, Spain and Italy. The lenders under the European ABS have been granted a security interest in the owned rental vehicles used in the Company's vehicle rental operations in these countries and certain contractual rights related to such vehicles.
In May 2025, IFF No. 2 amended the European ABS, which provided for the extension of the maturity date of total aggregate maximum borrowings of €1.2 billion, inclusive of the addition of Class B Notes, to April 2027. In August 2025, €129 million of non-extending commitments were voluntarily terminated.
In July 2025, IFF No. 2 amended the European ABS for the issuance of Class C Notes in an aggregate principal amount of €100 million. The Class C Notes can be drawn and repaid on a revolving basis and have a maturity date of April 2027. After giving effect to the issuance of the Class C Notes, total aggregate maximum borrowings available under the European ABS are €1.3 billion until April 2027.
Hertz Canadian Securitization
Hertz maintains a financing through TCL Funding Limited Partnership, a bankruptcy remote, indirect, wholly owned, special purpose subsidiary of Hertz, for the purpose of financing its rental car fleet operations in Canada (the "Hertz Canadian Securitization").
In May 2025, the Hertz Canadian Securitization was amended to extend the maturity date to April 2027.
Australian Securitization
Hertz maintains a financing through HA Fleet Pty. Limited, an indirect wholly owned subsidiary of Hertz, for the purpose of financing its rental car fleet operations in Australia (the "Australian Securitization"). HA Fleet Pty. Limited serves as the issuer under the Australian Securitization. The lender under the Australian Securitization has been granted a security interest primarily in the owned rental vehicles used in its vehicle rental operations in Australia and certain contractual rights related to such vehicles.
In June 2025, the Australian Securitization was amended to extend the maturity date to June 2027.
New Zealand RCF
Hertz maintains a financing through Hertz New Zealand Holdings Limited ("Hertz New Zealand"), an indirect wholly owned subsidiary of Hertz, for the purpose of financing its rental car fleet operations in New Zealand. Hertz New Zealand is the borrower under a credit agreement that provides for aggregate maximum borrowings on a revolving basis under an asset-based revolving credit facility (the “New Zealand RCF”).
In August 2025, the New Zealand RCF was amended to extend the maturity date to August 2027.
U.K. ABS
The U.K. ABS is intended to be the primary vehicle financing facility for the Company's vehicle rental fleet in the U.K., in which the lenders under the U.K. ABS are granted a security interest in the owned rental vehicles used in the Company's vehicle rental operations in the U.K. and certain contractual rights related to such vehicles.
In December 2024, HFF entered into the U.K. ABS. Upon entrance, the U.K. ABS was not funded. During the first quarter of 2025, the U.K. ABS aggregate maximum borrowings were increased to £215 million.
In December 2025, the U.K. ABS was amended to extend the maturity date to March 2028.
Maturities
As of December 31, 2025, the nominal amounts of maturities of debt for each of the years ending December 31 are as follows:
| (In millions) | 2026 | 2027 | 2028 | 2029 | 2030 | After 2030 | |||||||||||||||||||||||||||||
| Other Non-Vehicle Debt | $ | 284 | $ | 18 | $ | 2,270 | $ | 2,250 | $ | — | $ | 6 | |||||||||||||||||||||||
Exchangeable Notes Due 2029 | — | — | — | 271 | — | — | |||||||||||||||||||||||||||||
Exchangeable Notes Due 2030 | — | — | — | — | 425 | — | |||||||||||||||||||||||||||||
| Total Non-Vehicle Debt | 284 | 18 | 2,270 | 2,521 | 425 | 6 | |||||||||||||||||||||||||||||
| Vehicle Debt | 2,901 | 4,742 | 1,676 | 938 | 964 | 458 | |||||||||||||||||||||||||||||
| Total | $ | 3,185 | $ | 4,760 | $ | 3,946 | $ | 3,459 | $ | 1,389 | $ | 464 | |||||||||||||||||||||||
The Company has reviewed its debt facilities and determined that it is probable that the Company will be able, and has the intent, to refinance these facilities at such times as the Company determines appropriate prior to their respective maturities.
Borrowing Capacity and Availability
Borrowing capacity and availability comes from the Company's revolving credit facilities, which are a combination of variable funding asset-backed securitization facilities, cash-flow based revolving credit facilities, asset-based revolving credit facilities and the First Lien RCF. Creditors under each such asset-backed securitization facility and asset-based revolving credit facility have a claim on a specific pool of assets as collateral. With respect to each such asset-backed securitization facility and asset-based revolving credit facility, the Company refers to the amount of debt it can borrow given a certain pool of assets as the borrowing base.
The Company refers to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility (i.e., with respect to a variable funding asset-backed securitization facility or asset-based revolving credit facility, the amount of debt the Company could borrow assuming it possessed sufficient assets as collateral) less the principal amount of debt then-outstanding under such facility and, in the case of the First Lien RCF, less any issued standby letters of credit. With respect to a variable funding asset-backed securitization facility or asset-based revolving credit facility, the Company refers to "Availability Under Borrowing Base Limitation" as the lower of Remaining Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt that can be borrowed given the collateral possessed at such time).
The following facilities were available to the Company as of December 31, 2025 and are presented net of any outstanding letters of credit:
| (In millions) | Remaining Capacity | Availability Under Borrowing Base Limitation | |||||||||
| Non-Vehicle Debt | |||||||||||
First Lien RCF(1) | $ | 924 | $ | 924 | |||||||
| Total Non-Vehicle Debt | 924 | 924 | |||||||||
| Vehicle Debt | |||||||||||
| HVF III Series 2021-A | 1,623 | — | |||||||||
| European ABS | 577 | — | |||||||||
| Hertz Canadian Securitization | 40 | — | |||||||||
| Australian Securitization | — | — | |||||||||
| New Zealand RCF | 6 | 1 | |||||||||
| U.K. ABS | 181 | — | |||||||||
| Other Vehicle Debt | 42 | — | |||||||||
| Total Vehicle Debt | 2,469 | 1 | |||||||||
Total(1) | $ | 3,393 | $ | 925 | |||||||
(1) In January 2026, the Company made a payment for the stipulated amount of $346 million in connection with the case captioned Wells Fargo Bank, National Association v. The Hertz Corporation, et. al., as further disclosed in Note 15, "Contingencies and Off-Balance Sheet Commitments," which was funded through borrowings under the First Lien RCF.
Letters of Credit
As of December 31, 2025, there were outstanding standby letters of credit totaling $995 million comprised primarily of $681 million issued under the First Lien RCF and $245 million issued under the Term C Loan. As of December 31, 2025, no capacity remained to issue additional letters of credit under the Term C Loan. Such letters of credit have been issued primarily to provide credit enhancement for the Company's asset-backed securitization facilities and to support the Company's insurance programs, as well as to support the Company's vehicle rental concessions and leaseholds. As of December 31, 2025, none of the issued letters of credit have been drawn upon.
Hertz also has access to Standby LCs, in which, at Hertz's option and under the terms of the facilities, Hertz may request letters of credit be issued for itself and on behalf of certain of its subsidiaries up to the committed amounts of the facilities. In February 2026, Hertz increased the committed amounts under its Standby LCs by approximately $200 million.
Pledges Related to Vehicle Financing
Substantially all of the Company's revenue earning vehicles and certain related assets are owned by special purpose entities or are encumbered in favor of the lenders under the various credit facilities, other secured financings or asset-backed securities programs. None of the value of such assets (including the assets owned by Hertz Vehicle Financing III LLC, TCL Funding LP and each of the domestic and international subsidiaries that pledge vehicle and vehicle related assets as part of the Company's securitization programs) will be available to satisfy the claims of non-vehicle secured or unsecured creditors unless the vehicle related secured creditors under the securitization programs are paid in full.
The Company has a 25% ownership interest in IFF No. 2, whose sole purpose is to provide commitments to lend under the European ABS in various currencies subject to borrowing bases comprised of revenue earning vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. IFF No. 2 is a VIE and the Company is the primary beneficiary; therefore, the assets, liabilities and results of operations of IFF No. 2 are included in the accompanying consolidated financial statements. As of December 31, 2025 and 2024, IFF No. 2 had total assets of $1.1 billion and $1.4 billion, respectively, comprised primarily of intercompany receivables, and total liabilities of $1.1 billion and $1.4 billion, respectively, comprised primarily of debt.
The Company incorporates HFF as a special purpose orphan entity. HFF provides a vehicle financing facility for the Company's vehicle rental fleet in the U.K. through the U.K. ABS. HFF is a VIE, and the Company is the primary beneficiary; therefore, the assets, liabilities and results of operations of HFF are included in the accompanying consolidated financial statements. As of December 31, 2025, HFF had total assets of $135 million, comprised primarily of intercompany receivables, and total liabilities of $135 million, comprised primarily of debt. As of December 31, 2024, HFF had total assets of $2 million, comprised primarily of deferred financing costs, and total liabilities of $2 million, comprised primarily of accrued liabilities.
Covenant Compliance
The First Lien Credit Agreement requires Hertz to comply with the following financial covenant: a First Lien Ratio, which requires a ratio of less than or equal to 3.0x in the first and last quarters of the calendar year and 3.5x in the second and third quarters of the calendar year. Amendment No. 8 temporarily increased the First Lien Ratio and contained a minimum liquidity covenant, which expired on the first day of the second quarter of 2025, as disclosed above. Additionally, Amendment No. 10 requires a minimum liquidity covenant, consistent with Amendment No. 8, and will sunset upon the end of the Relief Period, as disclosed above. As of December 31, 2025, Hertz was in compliance with the First Lien Ratio. As of December 31, 2025, Hertz was in compliance with the minimum liquidity covenant, as disclosed above.
Additionally, the Corporate Indebtedness contains customary affirmative covenants including, among other things, the delivery of quarterly and annual financial statements and/or compliance certificates, and covenants related to conduct of business, maintenance of property and insurance, compliance with environmental laws and, where applicable, the granting of security interests for the benefit of the secured parties under the applicable agreements on after-acquired real property, fixtures and future subsidiaries.
The terms of the Corporate Indebtedness contain covenants limiting the ability of Hertz and its restricted subsidiaries to: incur or guarantee additional indebtedness; incur or guarantee secured indebtedness; pay dividends or distributions on, or redeem or repurchase, Hertz Global capital stock; make certain investments or other restricted payments; sell certain assets; transfer intellectual property to unrestricted subsidiaries; merge, consolidate or sell all or substantially all of its assets; and create restrictions on the ability of Hertz’s restricted subsidiaries to
pay dividends or other amounts to Hertz. As per the terms of the Corporate Indebtedness, these covenants are subject to a number of important and significant limitations, qualifications and exceptions.
As of December 31, 2025, the Company was in compliance with all covenants under the terms of the agreements governing the respective Corporate Indebtedness.
Accrued Interest
As of December 31, 2025 and 2024, accrued interest was $98 million and $103 million, respectively, which is included in accrued liabilities in the accompanying consolidated balance sheets.
Restricted Net Assets
Hertz and certain of its subsidiaries are subject to contractual restrictions under the terms of its debt, including restrictions on the ability to pay dividends (directly or indirectly). As of December 31, 2025, the restricted net assets of the subsidiaries of Hertz and Hertz Global exceed 25% of their total consolidated net assets, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 7, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 6, 2017 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.