Hertz Announces Launch of Public Offering of Common Stock by Selling Stockholders and Repurchase of Common Stock

Rhea-AI Summary

Hertz Global Holdings, Inc. (OTCPK:HTZZ) announced a public offering of 37,100,000 shares of its common stock by certain stockholders. Hertz plans to repurchase shares valued between $250 million and $500 million from underwriters as part of the transaction. The offering price is expected to range from $25.00 to $29.00 per share. Hertz will not receive any proceeds from the stock sales and intends to fund the repurchase using cash on hand. The company is also pursuing a listing on Nasdaq under the ticker symbol 'HTZ.'

Positive

• Repurchase of shares valued between $250 million and $500 million indicates strong cash reserves.
• Potential listing on Nasdaq may increase visibility and liquidity for shareholders.

Negative

• Selling stockholders are offering a substantial number of shares which may lead to dilution for existing shareholders.
• Hertz will not receive any proceeds from the offering, impacting future financial flexibility.

ESTERO, Fla., Nov. 3, 2021 /PRNewswire/ -- Hertz Global Holdings, Inc. (OTCPK:HTZZ) ("Hertz" or the "Company") announced today that it has launched a public offering of its common stock by certain stockholders of Hertz.  The selling stockholders are offering 37,100,000 shares of Hertz common stock, of which Hertz intends to repurchase from the underwriters shares having an aggregate purchase price of between $250 million and $500 million (the "Repurchase"). In addition, a selling stockholder intends to grant the underwriters a 30-day option to purchase up to an additional 5,565,000 shares of Hertz common stock. The public offering price is expected to be between $25.00 and $29.00 per share.

Hertz will not receive any proceeds from the sale of shares by the selling stockholders. Hertz expects to fund the Repurchase with cash on hand. The Repurchase is subject to completion of the offering and the satisfaction of other customary conditions.

Hertz has applied to list on The Nasdaq Global Select Market under the ticker symbol "HTZ." Hertz's common stock currently trades on the over-the-counter market under the symbol "HTZZ."

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC are acting as lead bookrunning managers for the proposed offering. Barclays Capital Inc. and Deutsche Bank Securities Inc. are acting as additional bookrunners, and Guggenheim Securities, LLC is acting as co-manager for the proposed offering.

The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or email: prospectus-ny@ny.email.gs.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, email at prospectus-eq_fi@jpmorgan.com, or telephone: 1-866-803-9204; or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT HERTZ

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of federal securities laws. Words such as "expect" and "intend" and similar expressions identify forward-looking statements. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those in our risk factors that we identify in our most recent annual report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on February 26, 2021, and any updates thereto in the Company's quarterly reports on Form 10-Q and current reports on Form 8-K. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and we undertake no obligation to update this information.

 

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SOURCE Hertz Global Holdings, Inc.

FAQ

What is Hertz's public offering of common stock about?

Hertz announced a public offering of 37,100,000 shares by certain stockholders, coupled with a planned repurchase of shares valued between $250 million and $500 million.

How will the share repurchase be funded?

Hertz intends to fund the repurchase using cash on hand.

What is the expected offering price for Hertz shares?

The public offering price is expected to range from $25.00 to $29.00 per share.

What impact does this offering have on Hertz shareholders?

The offering may lead to dilution of existing shareholders' equity, as a large number of shares are being sold by stockholders.

Will Hertz benefit directly from the sale of these shares?

No, Hertz will not receive any proceeds from the sale of shares by the selling stockholders.