Hertz Prices $100M Equity at 10% Discount, Shares Near 20-Month Low
HTZ•Hertz priced a $100 million share offering at $2.70 per share, a 10% discount, and upsized exchangeable PIK notes to $350 million for debt repayment. Shares slid over 7% premarket, extending a 41% drop toward 20-month lows after Q2 adjusted EBITDA guidance of $50 million to $80 million.
1. Share Offering Details
Hertz launched a registered offering of roughly 37 million common shares, raising $100 million by pricing shares at $2.70 each, reflecting a 10% discount to the prior close. Under a share-lending arrangement, Hertz will support hedging activities tied to its exchangeable notes offering while securing proceeds for general corporate use.
2. PIK Notes Upsized
The Hertz subsidiary increased its private placement of exchangeable senior first-lien secured payment-in-kind notes due 2030 to $350 million from $300 million. Net proceeds of approximately $339.5 million will be used to repay borrowings under the revolving credit facility and for general corporate purposes, with the offering closing on June 29.
3. Stock Performance and Guidance
HTZ shares declined over 7% in pre-market action, extending a 41% sell-off from the prior session toward 20-month lows. The company now forecasts second-quarter adjusted EBITDA of $50 million to $80 million, driven lower by weakness in the used-car market and reduced vehicle sale proceeds.
