The Hertz Corporation has entered into a joint venture for its Oro Mobility business with a group of investors, including Cohen Private Ventures, Certares, and Knighthead. The investors will purchase a significant stake in the newly formed joint venture entity, Oro Mobility Holdings LLC, for approximately $80.89 million in cash. Concurrently, Hertz agreed to repurchase approximately $51.1 million of its outstanding second-lien notes at a significant discount.
Key Details
- Joint Venture Transaction: Investors purchased Class A Common Units of Oro Mobility Holdings LLC for ~$80.89 million, representing 50% of the voting units and approximately 15.86% of the common units.
- Debt Repurchase: Hertz repurchased ~$51.1 million aggregate principal of its 8.000% Exchangeable Senior Second-Lien Secured Notes due 2029 for ~$20.86 million, a 60% discount to par value.
- Operational Agreements: Hertz will provide ongoing support through a Services Agreement and will lease vehicles to the JV under a Fleet Lease Agreement with payments of approximately $13.7 million per month.
- Governance: The joint venture will be governed by a six-person board, with Hertz and the investors each entitled to designate three members.