Hertz prices share lending deal tied to new debt offering

Hertz Global Holdings, Inc. (NASDAQ: HTZ) has priced a SEC-registered offering of 37,037,037 shares of common stock at $2.70 per share, according to a press release from the company.

The shares will be loaned to J.P. Morgan Securities LLC under a share lending agreement. Hertz will not receive proceeds from the sale of the borrowed shares. J.P. Morgan Securities LLC, acting as share borrower, will receive all proceeds and pay Hertz a nominal lending fee. The borrowed shares must be returned to the company under the terms of the agreement.

J.P. Morgan Securities LLC has indicated it or an affiliate intends to sell the borrowed shares and use the resulting short position to facilitate hedging transactions for investors in a separate offering of Exchangeable Senior First-Lien Secured PIK Notes due 2030, which Hertz's wholly-owned indirect subsidiary, The Hertz Corporation, also priced on the same date.

The share offering is contingent on the closing of the notes offering, though the notes offering is not contingent on the closing of the share offering. Hertz noted that the share lending activity could affect the prevailing market price of its common stock.

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