Hertz Shares Slip On Heels Of Debt Offering: What's Going On?
Portfolio Pulse from Nabaparna Bhattacharya
Hertz Global Holdings, Inc. (NASDAQ:HTZ) shares fell after the company announced a $750 million debt offering to strengthen its financial position and support future profitability. The offering includes $500 million in First Lien Senior Secured Notes and $250 million in Exchangeable Senior Second-Lien Secured PIK Notes, both due in 2029. The funds will be used to reduce a portion of Hertz's $2.0 billion revolving credit facility.
June 20, 2024 | 4:40 pm
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Hertz Global Holdings, Inc. (NASDAQ:HTZ) shares fell after the company announced a $750 million debt offering. The offering aims to strengthen its financial position and support future profitability. The funds will be used to reduce a portion of its $2.0 billion revolving credit facility.
The announcement of a significant debt offering often leads to a short-term decline in stock price due to concerns about increased leverage and potential dilution. However, the move aims to improve Hertz's financial stability and liquidity, which could be beneficial in the long term.
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