Hertz Global Holdings announced the pricing of a registered offering of 37,037,037 shares of common stock at $2.70 per share. These shares will be loaned to J.P. Morgan Securities as part of a share lending agreement, with the underwriter receiving all proceeds while Hertz gets only a nominal lending fee. The borrowed shares are intended to facilitate hedging by investors in a concurrent private offering of Exchangeable Senior First-Lien Secured PIK Notes due 2030 by Hertz Corp. The share offering is contingent on the closing of the notes offering, though the notes offering is not contingent on the share offering. The activity could affect the market price of Hertz common stock.
Hertz Global Holdings IncHertz prices a large share offering at $2.70, diluting existing shareholders and potentially depressing the stock price.