Bankrupt Hertz Warns Buyers They'll Need A Miracle To Avoid Total Loss As Bonds Value Equity At Negative $2 Billion

Two days after Hertz' own lawyer, White & Case's Tom Lauria warned that the trading price of Hertz shares was "disconnected from fundamentals" just as bankruptcy court approved the company's plan to sell up to $1 billion in stock, the company has issued an 8-K in which it cut the offering price in half - now seeking to raise up to $500 million perhaps as a result of the drop in HTZ stock this morning - with a bevy of risk factors laying out the terms of the deal that Jefferies will pursue in its quest to sell hundreds of millions of HTZ shares to retail investors, including using the word "worthless" to describe its stock no less than five times.

On June 15, 2020, Hertz Global Holdings, Inc. (the “Company” or “we”) entered into an open market sale agreementSM (the “Agreement”) with Jefferies LLC (the “Agent”) under which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock, par value $0.01 per share (the “Common Stock”), having an aggregate offering price of up to $500.0 million through the Agent as its sales agent and/or principal (the “ATM Program”).

The Agent may sell the Common Stock by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) of the Securities Act of 1933, as amended, including without limitation block transactions, sales made by means of ordinary brokers’ transactions on the New York Stock Exchange or sales made into any other existing trading market of the Common Stock, or in negotiated transactions with the consent of the Company. The Agent will use commercially reasonable efforts to sell the Common Stock from time to time, based upon instructions from the Company (including any price, time or size limits or other customary parameters or conditions the Company may impose). The Company will pay the Agent a commission of up to 3.0% of the gross sales proceeds of any Common Stock sold through the Agent under the Agreement, and also has provided the Agent with customary indemnification rights.

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Alexa Graham 8 months ago Member's comment

And people are still buying!