Hertz Global Holdings said last week it will hold a public offering of common stock and convertible senior notes.
Hertz Holdings intends to offer about 40 million shares of common stock in an underwritten registered public offering. In connection with the offering, Hertz will grant the underwriters a 30-day option to purchase up to an additional 6 million shares of common stock. Investment funds associated with Clayton, Dubilier & Rice and The Carlysle Group, existing Hertz stockholders, are expected to purchase at least $150 million worth of common stock, a substantially concurrent transaction expected to close after the public offering of common stock.
Hertz also intends to offer about $250 million aggregate principal amount of convertible senior notes due June 1, 2014, in an underwritten registered public offering. In connection with this offering, Hertz Holdings intends to grant the underwriters a 30-day option to purchase up to an additional $37.5 million aggregate principal amount of convertible senior notes, which will be convertible into cash, shares of Hertz Holdings common stock, or a combination of cash and shares, at the option of Hertz Holdings. The offering price, interest rate, conversion price and other terms of the notes will be determined by Hertz Holdings and the underwriters.
Hertz Holdings intends to use the proceeds from the offerings to increase its liquidity and for general corporate purposes, including the repayment of consolidated debt.
Hertz Global Holdings is the parent company of Hertz Equipment Rental Corp., No. 4 on the RER 100.