Hertz Global Holdings

restructured

Retail / Car Rental — Clayton Dubilier & Rice / Carlyle / Merrill Lynch PE

Deal Terms

Entry Year2005

Entry EV$14.8B

Entry Multiple8x

Leverage6.5x

Debt Amount$6.9B

Risk Metrics

LTV (est.)47%

Debt / EV0.47x

Notes

CD&R/Carlyle/Merrill $14.8B LBO from Ford (2005). Just $2.3B equity, $6.9B fleet debt. $1B dividend recap within 6 months. IPO'd within a year. PE exited by 2013. Carl Icahn then piled in ($2.3B). Filed Chapter 11 May 2020 (COVID). Lingering LBO debt structure contributed to fragility.

Sponsor

Carlyle Group$435B AUM

Hot Potato History

1994→Ford Motor Company

2005→Clayton Dubilier & Rice + Carlyle + Merrill Lynch($15B)

2006→Public (IPO)($15B)

2021→Post-bankruptcy (Knighthead + Certares)($6B)

Stock crashed from $35 to $3 post-EV debacle. Second near-death cycle. Athena Technology and Bill Ackman taking stakes.