Hertz Shares Get a Lift After Upsized Bond Offering
By Dean Seal
Shares of Hertz Global Holdings are driving higher after the company raised the size of its bond offering to $1 billion in an effort to accelerate its fleet rotation.
The stock was up 10% at $3.87 in early trading. Shares have had a tough year so far, falling 63% year-to-date and hitting a new record low this week, according to FactSet.
The rental car company said before the bell that it now plans to sell an additional $250 million worth of 12.625% first-lien senior secured notes due 2029.
The expansion comes a day after Hertz issued $750 million in high-yield bonds, hoping to bolster its balance sheet. The deal includes $250 million in new debt that is convertible to stock, raising the risk that existing shareholders could have their holdings diluted.
The issuance comes as Hertz looks to rotate out more expensive vehicles with high capital costs and rotate in lower-cost vehicles, according to a filing on Thursday.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
June 21, 2024 11:12 ET (15:12 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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