Car rental Hertz ups its share expectations ahead of relisting
Shareholders of Hertz increased the size of their public offering of shares by 20 per cent, ahead of plans to relist on the Nasdaq.
The Florida-based car rental company said the pricing of the upsized public offering of 44.52 million shares, increased from 37.1 million announced last week, will be $29.
The shares are being offered by a group of shareholders, including Cougar Capital and Oaktree Capital Management, which raised $1.3 billion under the new terms, according to a public filing.
Of the shares offered, Hertz expects to repurchase from the underwriters more than 10.3 million shares at an aggregate purchase price of $300m.
Since October 2020, Hertz’s common stock has traded on the over-the-counter market under the symbol HTZZ, following its Chapter 11 filing in May 2020.
The company after emerging from bankruptcy had previously applied to list on the Nasdaq under the ticker symbol “HTZ.”
The company’s outstanding warrants also will be listed today on the Nasdaq under the ticker symbol “HTZWW.”
Hertz, which exited bankruptcy protection in June, said Goldman Sachs, JPMorgan and Morgan Stanley are acting as lead bookrunning managers for the proposed offering, which is expected to close Friday.
The public offering and repurchase plan follow a runup in the company’s stock after it announced former Ford CEO Mark Fields as its interim chief executive and a plan to add 100,000 Tesla cars to its fleet through 2022. However, no agreement has been signed.