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HTZ - Hertz


henrysalt

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Anyone looking at HTZGQ? 

The equity holder will receive $1.53/share cash, about $0.91/share in new equity (3% of equity), the rest is in subscription rights or 30-year warrants. The approval meeting is scheduled for 6/10/2021 and it's the deadline to elect either subscription rights or warrants.

Its competitor is CAR, which is trading at market cap of just over $6 billion. It has total debt $10.6b ( fleet debt of $6.2b and corporate debt of $4.4). Both companies have about similar sales in Q1 2021.

I couldn't find good information regarding emerged Hertz debt situation except they say there will be $1.5b preferred and $1.3b term loan facility. See this: https://www.sec.gov/ix?doc=/Archives/edgar/data/47129/000110465921066944/tm2116104d2_8k.htm

Market is discounting the warrant valuation by over 30% ($3.76 vs $5.56) to the valuation given by plan sponsor.

 

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