Hertz Global Holdings Inc (NASDAQ:HTZ) shares are accelerating to the upside in extended trading on Wednesday after the company announced financing that will result in increased long exposure for Bill Ackman’s Pershing Square Capital Management.
HTZ shares are moving higher after hours. Find out more here.
What To Know: Hertz said it plans to offer $250 million of exchangeable senior notes due 2030 in a private offering. The company will also grant the initial purchasers a 13-day option to purchase up to an additional $37.5 million of the notes.
Holders of the notes will have the right to require Hertz to repurchase all or a portion of their notes at 100% of the principal amount plus accrued and unpaid interest.
Hertz intends to use the proceeds to fund the cost of entering into capped call transactions and to fund the partial redemption or repurchase of its outstanding senior notes due 2026.
In connection with the offering, Hertz said an affiliate of Pershing Square plans to enter into privately negotiated cash-settled total return swap transactions with a swap counterparty, pursuant to which the Pershing Square entity will obtain long exposure to approximately $100 million of the company’s common stock.
Pershing Square announced a significant stake in Hertz in April. Hertz shares are up approximately 90% since the start of the year, largely due to the firm’s investment.
HTZ Price Action: Hertz shares closed Wednesday higher after the company announced a pro rata settlement distribution of approximately $154.05 million. The stock was up 13.41% in after-hours, trading at $7.91 at the time of publication, according to Benzinga Pro.
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