Hertz Global Holdings, Inc (NYSE: HTZ ) stock was up on Wednesday following an announcement for a private offering.
The private offering announcement was made by the company after markets closed on Tuesday. In the announcement, the company says it plans to make a private offer of $1 billion for senior second priority secured notes.
Hertz Global Holdings, Inc is expecting the senior second priority secured notes to pay interest twice a year in arrears. The private offering of the notes won't be subject to registration requirements of the Securities Act of 1933.
The senior second priority secured notes in the private offering will be guaranteed by Hertz Global Holdings, Inc's domestic subsidiaries that occasionally guarantee its senior credit facilities. The private offer will be made through HTZ's The Hertz Corporation, which is a wholly-owned subsidiary.
Hertz Global Holdings, Inc has several plans for the funds that it expects to acquire from the private offering. It says that it will use these funds to pay outstanding principal amounts for its senior notes that are due in 2018 and 2019. This includes an outstanding $250.0 million in 2018 and $450.0 million in 2019. The company will also use some cash it has on hand for this.
Hertz Global Holdings, Inc also plans to use some of the leftover funds from the private offering to help it refinance certain debts that it has. This can include repayments of outstanding borrowings, senior note repurchases and more.
HTZ stock was up 4% as of Wednesday morning, but is down 54% year-to-date.
More From InvestorPlace
- The 8 Biggest Surprises in Donald Trump's Budget
- The Top 10 S&P 500 Dividend Stocks to Buy Now
- 10 Best Mutual Funds for Retirement
The post Why Hertz Global Holdings, Inc (HTZ) Shares Are Heading Higher Today appeared first on InvestorPlace .