Latham Advises on Debt Financing for Herc Holdings’ Completed Acquisition of H&E Equipment Services

Herc Holdings Inc. (NYSE: HRI), one of North America’s leading equipment rental suppliers, has announced that it has completed its acquisition of H&E Equipment Services, Inc. d/b/a H&E Rentals (H&E). Under the terms of the merger agreement, Herc Rentals acquired all of the issued and outstanding shares of H&E’s common stock for, on a per share basis, US$78.75 in cash and 0.1287 shares of Herc Rentals common stock. With the completion of the transaction, shares of H&E common stock have ceased trading and will no longer be listed on the NASDAQ.

In connection with the financing supporting the transaction, Latham represented the financing sources in (i) the borrowing of US$750 million under a seven-year senior secured term loan facility, (ii) the amendment and restatement of a senior secured asset-based revolving credit facility and, (iii) the issuance by Herc Holdings Escrow, Inc., a newly formed, wholly-owned subsidiary of Herc Holdings Inc., of $1.65 billion 7.000% senior notes due 2030 and US$1.1 billion 7.250% senior notes due 2033. After the acquisition, Herc Holdings Escrow, Inc. merged with and into Herc Holdings Inc. and Herc Holdings Inc. became the primary obligor under the notes and the indenture.

New York partner Ian Schuman, Washington, D.C./New York partner Charles Cassidy, and New York counsel Hana Nah led the Latham capital markets team, with associates Connor Adams, Alex Gulino, and Jessmine Lee, while partners Jennifer Ezring, Conray Tseng, and Brianna Oller, and Houston counsel Bryce Kaufman led the banking team, with associates Anna Molina, Christian DeSimone, Jack Klein, Jenny Li, Jason Wang, and Cynthia Yang, with assistance from Stephen Young. Advice was also provided on tax matters by Los Angeles/Century City partner Eric Cho and New York partner Bora Bozkurt, with associates Kathryn Harrington and Alice Chen; on data privacy matters by Houston/Austin partner Robert Brown, with associate Sarah Zahedi; on ERISA matters by Washington, D.C. partner Matthew Conway and Los Angeles/New York counsel Aryeh Zuber, with associate Sam Sturgis; on intellectual property matters by New York partners Jessica Cohen and Jeffrey Tochner, with associate Ece Gonulal; on sanctions and anti-money laundering matters by associate Thomas Lane; and on uniform commercial code matters by New York partner Brian Rock.