Hertz to raise up to $500m through share sale
HERTZ GLOBAL HLD
MX$38.00
21:12 29/10/20
Hertz Global Holdings is to looking to raise up to $500.0m through an agreed share sale, the ailing car rental group confirmed on Monday.
Hertz said it had entered into an open market sale agreement with Jefferies to offer its common stock for sale with an aggregate offering price of up to $500.0m.
The share sale is unusual and higher risk than most fund-raisings, because Hertz filed for Chapter 11 bankruptcy protection at the end of May, after travel restrictions introduced to halt the spread of Covid-19 caused global sales to collapse.
Hertz’s request to sell up to $1bn of new stock was approved by a court on Friday, which ruled it could go ahead if it was the best way to fund the company’s reorganisation. Companies in Chapter 11 usually rely on expensive loans to keep going through the restructuring process.
Florida-based Hertz, which employs around 30,000 people and trades under the brands Hertz, Dollar and Thrifty, has debts of close to $19bn.
Shares in Hertz tumbled 25% in pre-market trading to $2.12. At the end of February, the stock hit a high of $20.29.