This is a routine securitization refinancing that provides Hertz with $1.0B in fleet funding. Monitor upcoming quarterly earnings for fleet utilization and rental revenue trends, which determine the underlying collateral performance. The higher coupons on junior tranches (Class E at 9.64%-10.67%) reflect the subordinated risk but are standard for ABS structures.
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Executive Summary
Hertz Global Holdings, through its subsidiary Hertz Vehicle Financing III LLC, issued two new series of asset-backed notes (Series 2026-1 and Series 2026-2) totaling $1.0 billion in aggregate principal amount, secured by rental car fleet assets. The transactions represent routine securitization financing to support the company's fleet operations and provide liquidity, with no material financial data on the company's operating performance or earnings included in the filing.
Key Financial Metrics
Key Facts
- Hertz Vehicle Financing III LLC issued $500 million in Series 2026-1 notes (Class A $327M at 5.09%, Class B $48M at 5.67%, Class C $64M at 6.45%, Class D $38M at 7.91%, Class E $23M at 9.64%)
- Hertz Vehicle Financing III LLC issued $500 million in Series 2026-2 notes (Class A $327M at 5.40%, Class B $48M at 6.08%, Class C $64M at 6.76%, Class D $38M at 8.60%, Class E $23M at 10.67%)
- Total combined issuance across both series is $1.0 billion in asset-backed notes
- Both series were issued on May 28, 2026, with initial payment date of June 25, 2026
- The notes are secured by rental car fleet assets and are rated by DBRS and Moody's
- The Series 2026-1 notes have an expected final payment date of November 2029 and legal final payment date of November 2030
- The Series 2026-2 notes have an expected final payment date of November 2029 and legal final payment date of November 2030
- Proceeds are used for general fleet financing purposes, not for acquisitions or restructuring
Financial Impact
$1.0 billion in total asset-backed note issuance across two series, with interest rates ranging from 5.09% to 10.67% depending on tranche seniority
Risk Factors
- Fleet depreciation or declining used car values could reduce collateral coverage ratios
- Rising interest rates may increase refinancing costs for future ABS issuances
- Operational disruptions (travel demand, fleet supply) could impair lease payment collections backing the notes
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 2 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001657853-26-000036 |
| Document: hvfiii2026-2xseriessuppl.htm | 0001657853-26-000036 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 2, 2026 17w ago | 8-K | $2.04 $0.9600 | ▼ −52.83% | ▼ −55.32% | — |
May 7, 2026 21w ago | 8-K | $2.04 $0.7400 | ▼ −63.64% | ▼ −67.47% | — |
US Market Status
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