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Hertz shareholders improve public providing of shares and lift $ 1.three billion

Tesla Model 3 electric vehicles at a location in the Hertz neighborhood.

hertz

Hertz Global Holdings shareholders increased the size of their public offering by 20% before the shares are scheduled to be listed again on Tuesday on the Nasdaq under the ticker symbol “HTZ”.

The Estero, Fla.-Based car rental company said late Monday that the topped-up public offering of 44.52 million shares, up from 37.1 million announced last week, is $ 29 becomes – the upper end of its previously targeted range. The shares are being offered by a group of shareholders including Cougar Capital and Oaktree Capital Management, who raised $ 1.3 billion under the new terms, according to a public filing.

Of the shares offered, Hertz expects to buy back more than 10.3 million shares from the syndicate banks for a total purchase price of US $ 300 million.

Since October 2020, Hertz’s common stock has been traded over-the-counter under the symbol HTZZ after being filed under Chapter 11 in May 2020. After the bankruptcy, the company was previously listed on the Nasdaq under the ticker symbol “HTZ.”

The company’s outstanding warrants will also be listed on the Nasdaq on Tuesday under the ticker symbol “HTZWW”.

Listed stocks fell more than 5% to about $ 27.35 per share during early Tuesday afternoon trading. The warrants declined more than 7% to $ 19.20 per share.

Hertz, which left bankruptcy protection in June, said Goldman Sachs, JPMorgan and Morgan Stanley are serving as lead bookrunning managers for the proposed offering, which is slated to close on Friday.

The public offer and buyback plan follows a surge in the company’s shares after former Ford CEO Mark Fields was announced as interim chief and a plan to add 100,000 Tesla cars to its fleet by 2022.

“It’s not just about leading an excellent car rental company, we will continue to focus very much on it, but it is also about a transformation of Hertz,” said Fields on Tuesday in the “Squawk Box” of CNBC.

Tesla deal unclear

The status of Hertz’s deal with Tesla is unclear after CEO Elon Musk said last week that no agreement had been signed. Hertz has declined to comment directly on the deal as its plans remain on track.

Hertz vice chairman Tom Wagner of Knighthead Capital Management dodged answering questions on Tuesday about the status of the Tesla order and whether the vehicles would be paid full price, which Musk said Hertz would do .

“We will work with Tesla and other OEMs to bring electric vehicles into the fleet so that they work for the OEMs, in a way that works for Hertz,” Wagner said during the “Squawk Box” interview alongside Fields and Hertz -Chairman Gregory O’Hara, of Certares Management.

In the early days of the coronavirus pandemic, Hertz filed for bankruptcy protection – but as travel recovered somewhat and demand for rental cars increased, investors at Knighthead Capital Management and Certares Management said they would take over the company.

Knighthead, Certares and Apollo own 42% of Hertz, according to Bloomberg.

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