Hertz Announces Rights Offering
On 13 June 2019, Hertz Global Holdings, Inc’s (Hertz, Company) board approved a Rights Offering (the Offering), with the Company aiming to raise 750m via equity capital markets. The Company intends to issue 57m new shares at a price of USD12.95, representing a 20% discount to its 12 June 2019 closing price. The Offering is expected to take place from 26 June 2019, with the subscription period ending on 12 July 2019. In evaluating the Offering, the Company factored in general conditions in the markets; current business and capital raising opportunities and the cost of capital from other sources.
If successful, proceeds raised from the Offering will be used to repay all or a portion of its 5.875% Senior Notes due October 2020 and 7.375% Senior Notes due January 2021.The Offering will enable Hertz to improve their capital structure while deleveraging their balance sheet. Deleveraging the Company’s balance sheet will allow the Company to reduce its interest expense and improve free cash flow.