Car rental company Hertz is intending to repurchase all of
its outstanding Series A preferred stock after emerging from bankruptcy.
The money to buy back the 1.5 million outstanding shares provided by investors as part of the company's exit from Chapter 11 comes from Hertz¡¯s sale of $1.5 billion of bonds and cash on reserve. The
company raised $1.3 billion by relisting on Nasdaq earlier this month.
The move will allow the company to clean up its balance
sheet.
Hertz is offering $1,250 per share, less any applicable withholding
taxes. The tender offer closes on 21 December 2021, unless it is extended, the
company said in a statement.
The firm made headlines in October by announcing it would
purchase 100,000 Tesla cars in its bid to provide more electric vehicle options
for customers looking to reduce their carbon footprint.