(Source: MARKETWIRE)
Hertz Global Holdings, Inc. ("Hertz" or the "Company") (NYSE: HTZ) today announced that it had sold an additional 6,900,000 shares of its common stock and $24,755,000 in additional principal amount of its convertible senior notes to the underwriters of its previously reported equity and convertible senior notes public offerings. The sales of the additional shares of common stock and convertible senior notes resulted in net proceeds of approximately $43 million and approximately $24 million, respectively, to Hertz, after deducting underwriting discounts and commissions and before offering expenses payable by Hertz.
The sales were made pursuant to the exercise by the underwriters of each of the common stock and convertible senior notes offerings of their previously reported options to purchase additional securities. The additional common stock sale represents the full exercise of the underwriters' option in the common stock offering.
The Company previously announced that the aggregate gross proceeds of the dual equity and convertible senior notes public offerings and its expected private sale of common stock to investment funds associated with Clayton, Dubilier & Rice, Inc. and The Carlyle Group, which are existing Hertz stockholders, would be approximately $949 million. With the exercises of the underwriters' options, the total offering size of the public offerings and the private placement are now just over $1 billion, and the Company estimates that it will receive approximately $990 million of net proceeds, after deducting underwriting discounts and commissions and before offering expenses payable by Hertz.
The Company stated previously that proceeds of the equity and debt offerings, and the private placement, provide cash to support 2010 debt refinancing while maintaining liquidity to fund growth initiatives. Furthermore, using cash to retire debt will reduce the overall cost of fleet debt and lower fleet interest expense which will also benefit Corporate EBITDA.
Mark P. Frissora, Hertz's Chairman and Chief Executive Officer, said, "We are pleased the equity and debt offerings were well received by the market, and believe that this is a reflection of Hertz's perceived financial strength and our future growth potential. One of our primary objectives is to optimize the efficiency of our 2010 debt refinancing, and the offerings are a significant milestone in that process."
The private placement to our existing stockholders is subject to customary conditions as well as the Company's compliance with its obligation to deliver an information statement to stockholders regarding the approval of the private sale.
