Herc Holdings Prices $1.2 Billion Senior Unsecured Notes to Refinance Debt
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
0mins
Source: Businesswire
- Bond Issuance Scale: Herc Holdings announced the pricing of $600 million in 5.750% and $600 million in 6.000% senior unsecured notes due in 2031 and 2034, respectively, demonstrating the company's strong capital market financing capabilities.
- Clear Use of Proceeds: The net proceeds from this bond issuance will be used to redeem $1.2 billion of 5.50% senior notes, aimed at reducing financial costs and optimizing the capital structure, thereby enhancing the company's financial flexibility.
- Positive Market Response: The bond issuance is conducted in a private offering compliant with securities laws, expected to close on December 16, 2025, indicating market confidence in the company's future growth.
- Strategic Integration: This bond issuance aligns with Herc Holdings' recent acquisition of H&E Equipment Services, aiming to enhance market competitiveness through resource integration and operational optimization.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HRI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on HRI
Wall Street analysts forecast HRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HRI is 175.00 USD with a low forecast of 150.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
1 Hold
1 Sell
Moderate Buy
Current: 147.020
Low
150.00
Averages
175.00
High
200.00
Current: 147.020
Low
150.00
Averages
175.00
High
200.00
About HRI
Herc Holdings Inc. is an equipment rental supplier. It operates through subsidiaries, including Herc Rentals Inc. In addition to its principal business of equipment rental, it sells used equipment and contractor supplies, such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offer equipment re-rental services and provides on-site support to its customers; and provide ancillary services, such as equipment transport, rental protection, cleaning, refueling and labor. Its classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. Its ProSolutions offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shorting equipment as well as its ProContractor professional grade tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
IPO Momentum Persists: EquipmentShare.com Becomes the Latest Unicorn to Launch Public Offering.
IPO Market Activity: A company with a ".com" in its name is preparing to go public, indicating a resurgence in the IPO market reminiscent of the late 1990s.
Market Sentiment: This move reflects the current enthusiasm and optimism surrounding initial public offerings in the financial market.
Continue Reading
Wells Fargo Sees Rebound Potential in Heavily Shorted Stocks, Herc Target Price Implies 27% Upside
- Market Rebound Expectations: Wells Fargo anticipates a market 'reflation' and short squeeze driven by tax refunds averaging $800 per person, which will propel stock prices higher, particularly for lagging stocks with significant short positions.
- Herc Holdings Outlook: Herc Holdings has declined 15% over the past year, yet KeyBanc upgraded its rating to overweight with a $200 price target, implying a 27% upside, reflecting confidence that initial integration challenges post-HEES deal are largely resolved.
- Cost Synergy Goals: Herc aims to achieve approximately $125 million in targeted cost synergies by the end of FY26, with analysts believing that a stabilized salesforce will allow the company to focus on this goal, thereby enhancing profitability.
- Vera Therapeutics Potential: Wells Fargo highlights Vera Therapeutics, projecting that its lead drug atacicept will excel in a multibillion-dollar market, expected to outperform consensus and alleviate concerns regarding competitive risks.
Continue Reading