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Hertz sets conditions for its “re-IPO”

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The Hertz rental desk at San Francisco International Airport. Hertz is selling shares and will soon be listed on the Nasdaq.

David Paul Morris / Bloomberg

Hertz Global Holdings
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the car rental company, which emerged from bankruptcy in June, set the terms for a share offering on Wednesday, or what the company has referred to as a “re-IPO”.

Hertz plans to offer 37.1 million shares at $ 25 to $ 29 each, according to its prospectus. The shares are to be traded on the Nasdaq market under the ticker HTZ. Goldman Sachs, JP Morgan and Morgan Stanley are the leading underwriters of the offering.

Hertz shares are currently traded over the counter under the symbol HTZZ. Shares fell 4.4% in Wednesday morning trading to $ 33.50.

Hertz will price its offer on Monday and open its shares for trading the next day, said a person familiar with the situation.

Knighthead Capital and Certares Management, which won the bidding competition for Hertz in a bankruptcy court in May, are selling shares in the offer. According to the prospectus, the companies will own around 37.2% of Hertz after the offer.

Hertz was founded in 2018 and is one of the most famous car rental companies. It is operated by the Hertz, Dollar and Thrifty brands. It has company-owned locations, licensees and franchisees in the United States, Africa, Asia, Australia, Canada, the Caribbean, Europe, Latin America, the Middle East and New Zealand. It also sells cars through Hertz Car Sales and operates the Firefly car rental brand and Hertz 24/7 car sharing business in international markets, the prospectus reads.

Hertz applied for Chapter 11 protection in May 2020, one of the first hits in the travel decline caused by Covid19 this year. A year later, in June 2021, Hertz went out of bankruptcy.

In October, Hertz agreed to purchase 100,000 Tesla Model 3 electric vehicles by the end of 2022

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(UBER) to make up to 50,000 Tesla electric vehicles available for rent to Uber drivers by 2023.

The company was profitable in 2021 as tourist traffic rebounded. Hertz reported profits of $ 627 million for the nine months ended September 30, compared to a loss of $ 1.4 billion for the same period in 2020. Revenue rose nearly 34% to approximately 5.4 billion US dollars for September 30th, it says in the prospectus.

The company still has significant leverage. Hertz has approximately $ 8.7 billion in total debt as of Sept. 30, including $ 7.2 billion in vehicle-related debt and $ 1.5 billion in non-vehicle debt, the prospectus said.

Write to Luisa Beltran at [email protected]

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