Hertz shareholders increase public stock offering, raise $1.3 billion ahead of Nasdaq relisting

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  • Shareholders of Hertz Global Holdings increased the size of a public offering of shares by 20%, ahead of a plan for the stock to rejoin the Nasdaq on Tuesday under the ticker symbol “HTZ”.
  • The post-bankruptcy company said the upsized offering price of 44.52 million shares would be $29 — the high end of its previously targeted range.
  • Of the shares offered, Hertz expects to repurchase more than 10.3 million shares from underwriters at a total purchase price of $300 million.

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Shareholders of Hertz Global Holdings increased the size of a public offering of shares by 20%, ahead of plans to re-list the stock under the ticker symbol “HTZ” on the Nasdaq on Tuesday.

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Florida-based car-rental company Estero said late Monday that the price of the upsized public offering of 44.52 million shares, up from 37.1 million announced last week, would be $29 — the high end of its previously targeted range. The shares are being offered by an undisclosed group of stockholders, who have raised $1.3 billion under the new terms.

Of the shares offered, Hertz expects to repurchase more than 10.3 million shares from underwriters at a total purchase price of $300 million.

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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. Following bankruptcy, the company previously applied to be listed on the Nasdaq under the ticker symbol “HTZ”. Over-the-counter shares closed Monday at $32.62.

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

Hertz said Goldman Sachs, JP Morgan and Morgan Stanley are serving as the lead book-running managers for the proposed offering, which is expected to close on Friday.

The public offering and repurchase plan follows a run-up in the company’s stock after former Ford CEO Mark Fields was announced as its interim CEO and plans to add 100,000 Tesla cars to its fleet by 2022.

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

During the early days of the coronavirus pandemic, Hertz filed for bankruptcy protection – but as travel reversed somewhat and demand for rental vehicles grew, investors at Knighthead Capital Management and Certificate Management said they would take over the company. .

Hertz did not disclose which shareholders are selling the shares or how many shares each is selling.

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