Herc Holdings Inc. · NYSE:HRI
Herc — Debt Investor Presentation (May 2025)
11 slides from Herc's debt investor presentation, May 12, 2025
Slide 1: Executive Summary
Exhibit 99.1 Executive Summary • On February 19th, Herc Holdings Inc. (“Herc” or the “Company”) entered into a definitive agreement to acquire H&E Equipment Services, Inc. (“H&E”) for a total enterprise value of $4.8 billion in a combination of cash and stock (the “Transaction”) • The combined Compa
Slide 2: Transaction Overview
Transaction Overview Sources Uses • Proposed debt financing will consist of : 1 ABL Draw $919 Common Stock $525 • $919 million draw under upsized and extended New Term Loan B due 2032 750 Repayment of H&E Debt 1,364 5-year ABL Revolver New Unsecured Debt 2,750 Cash Consideration Paid 2,877 1 Equity
Slide 3: Strong Asset and Collateral Coverage
Strong Asset and Collateral Coverage Total Tangible Assets: Total Capitalization: 1 2 $7,635 million $12,465 million 2.1x Secured Debt Collateral Coverage Cash, $118 Property and Equipment, Net,$817 Secured Debt, $3,727 Total Secured Debt: 1 ~$8,700 million of Capitalization $3,727 million below Sec
Slide 4: Combined Fleet Portfolio Presents Opportunity
2 Combined Fleet Portfolio Presents Opportunity 1 2 Current Combined Company OEC growth of ~93% and increase of Current OEC mix at H&E presents large specialty mix of ~6% since 2016 opportunity for cross-selling in specialty Specialty Specialty Aerial Aerial 24% 17% 24% 27% 47 Acquisition of Months
Slide 5: Extended Customer Diversification
2 Extended Customer Diversification 1 H&E Herc Rentals 9% Non-Res • Strong Construction customer base with 36% 9% Industrial of FY 2024 Revenues H&E successfully shifted the portfolio towards Non- • Electrical, General Contractors, Mechanical, Residential $1,517M 9% Residential Construction, which d
Slide 6: Mega Project Opportunity
Mega Project Opportunity Government Stimulus Equipment Industry Rental Herc Rentals Opportunity and Private Investment Rental Share Opportunity 1 ~$547B ~2% $11B 2025 estimated project of total or ~$3.6B annually over 2 3 starts exceeding $250M project spend 3-year project life Government Equipment
Slide 7: Disciplined Capital Management
Disciplined Capital Management Illustrative tranching of the New $2,750M Unsecured Debt; New tranches will be 2 Combined Company Maturities Ample liquidity of $1.4B pro forma 3/31/25 subject to a minimum size of $1.0 billion $ in millions Syndicated Net leverage of 3.6x pro forma NEW Unsecured 3 3/3
Slide 8: Appendix
Appendix wercRentals : d { 0 USDOT 372163 MCc-897170
Slide 9: Reconciliation of Herc Net Income to Adj. EBITDA and Adj. EBITDA Margin
Reconciliation of Herc Net Income to Adj. EBITDA and Adj. EBITDA Margin $ in millions 2020 2021 2022 2023 2024 LTM 3/31/2025 Net income $ 74 $ 224 $ 330 $ 347 $ 211 $ 128 Income tax provision 20 67 104 100 80 74 Interest expense, net 93 86 122 224 260 261 Depreciation of rental equipment 403 420 536
Slide 10: Reconciliation of Net Income to Pro Forma Adj. EBITDA and Free Cash Flow
Reconciliation of Net Income to Pro Forma Adj. EBITDA and Pro Forma Adj. EBITDA Margin and Pro Forma Free Cash Flow $ in millions Pro Forma FYE 12/31/2024 Pro Forma LTM 3/31/2025 Net income $93 $9 Income tax provisions 39 33 Interest expense, net 605 589 Depreciation of rental equipment 978 997 Non-
Slide 11: Calculation of Pro Forma Net Leverage Ratio
Calculation of Pro Forma Net Leverage Ratio Net Leverage Ratio –The Company has defined its net leverage ratio as net debt, as calculated below, divided by adjusted EBITDA for the trailing twelve- month period. This measure should be considered supplemental to and not a substitute for financial info
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