Luisa Beltran
Hertz Global Holdings, the rental car company that emerged from bankruptcy in June, set the terms Wednesday for a share offering, or what the company has referred to as its "re-IPO."
Hertz plans to offer 37.1 million shares at $25 to $29 each, its prospectus said. The shares are set to trade on the Nasdaq market under the ticker HTZ. Goldman Sachs, J.P. Morgan, and Morgan Stanley are the lead underwriters on the offering.
Shares of Hertz currently trade over the counter under the symbol HTZZ. The shares were down 4.4%, to $33.50, in mid-morning trading on Wednesday.
Hertz is scheduled to price its offering on Monday, and its shares will open for trading the next day, a person familiar with the situation said.
Knighthead Capital and Certares Management, which won the bidding contest for Hertz in bankruptcy court in May, are selling shares in the offering. The firms will own about 37.2% of Hertz after the offering, the prospectus said.
Founded in 2018, Hertz is one of the most well-known car rental companies. It operates through brands Hertz, Dollar, and Thrifty. It has company-owned, licensee and franchisee locations in the U.S., 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 vehicle rental brand and the Hertz 24/7 car-sharing business in international markets, the prospectus said.
Hertz filed for Chapter 11 protection in May 2020, one of the first hit by the Covid19-induced decline in travel that year. Hertz emerged from bankruptcy a year later in June 2021.
In October, Hertz agreed to buy 100,000 Tesla Model 3 electric vehicles by the end of 2022. It is also teaming up with Uber Technologies (UBER) to make up to 50,000 Tesla EVs available for Uber drivers to rent by 2023.
The company was profitable in 2021 as travel rebounded. Hertz reported $627 million in income for the nine months ended Sept. 30, compared with $1.4 billion in losses for the same period in 2020. Revenue rose nearly 34%, to about $5.4 billion for the Sept. 30 period, the prospectus said.
The company still has a significant amount of leverage. Hertz has about $8.7 billion of total debt as of Sept. 30, including $7.2 billion of vehicle related debt and $1.5 billion of non-vehicle debt, the prospectus said.
Write to Luisa Beltran at luisa.beltran@dowjones.com