Rental car company Hertz Global Holdings Inc. is looking to go public just about 18 months after it filed for bankruptcy, filing a registration statement with the U.S. Securities and Exchange Commission for proposed public offering sometime this quarter.
The filing by Hertz appears to be another step in the recovery of the travel industry, which was crushed by the COVID-19 pandemic in 2020. The uptick appears to be the ideal time for Hertz investors, largely hedge funds, to get some of their money back as none of the proceeds of the sale will go to the company, according to the filing.
Like so many other travel-related companies, Hertz scrambled to try to ride out the storm, including moving to sell off part of its rental vehicle fleet. However, those efforts failed, leaving the company no other option than to file Chapter 11 bankruptcy May 2020.
As result of the filing, it was delisted from the New York Stock Exchange despite the excitement created the move created for the stock by day traders. Hertz emerged from bankruptcy in June. The company’s creditors were paid in full and while existing shareholders received more than $1 billion in value in the form of cash and warrants.
Going public again
The shares of new Hertz common stock to be sold will come from what the SEC filing described as a certain of the company’s stockholders. Most of the stock is held a group of hedge funds, which brought the rental car company out of bankruptcy last summer and are now holding blocks of stock in the reorganized company.
The terms of the offering haven’t been decided yet, according to the SEC filing. The offering is expected to occur this quarter, subject to market conditions and completion of any regulatory review.
Hertz’s common stock currently trades on the over-the-counter market under the symbol “HTZZ.” Hertz intends to apply to list its common stock on the Nasdaq Global Select Market under the symbol “HTZ” in connection with the offering.
New role for Fields at Hertz
Meanwhile, Hertz board of directors brought in new management at the top of the reorganized company.
Earlier this month former Ford CEO Mark Fields was named CEO and Paul Stone, who previously held the CEO’s title, shifted to a new role as president and chief operations officer.
The appointment of Fields and Stone are part of “a vision for an all-new Hertz that combines the iconic company’s brand strength and global fleet management expertise with new technology” in the travel, mobility and travel industries.
“Hertz is a global icon, and I’m honored to help lead the company into its next 100 years,” said Fields in a statement at the time. “Hertz’s unmatched global footprint will be combined with forward-looking investments that completely change the face of travel and mobility. The world is going to be hearing a lot from Hertz in the weeks and months ahead.”
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC are acting as lead-bookrunning managers for the proposed offering. Barclays Capital Inc. and Deutsche Bank Securities Inc. are acting as additional bookrunner for the offering, according to Hertz.
Hertz shares are currently trading at better than $25 per share.
