Intel stock extends gains after report of possible U.S. government stake
Hertz Global Holdings (OTC:HTZGQ), Inc. (NASDAQ:HTZ) announced Thursday that affiliates of The Hertz Corporation have amended agreements related to the company’s European asset-backed securitization (ABS) platform. The amendments allow for the issuance of new Class C Notes to unaffiliated third parties in an aggregate principal amount of €100 million.
According to the company’s statement based on a filing with the Securities and Exchange Commission, the new Class C Notes have a fixed interest rate of 10.54% and a maturity date in April 2027. The notes are subordinated to existing Class A and Class B Notes under the same facility and have been issued on a revolving basis.
The ABS facility, which covers Hertz’s vehicle fleets in Belgium, France, Germany, Italy, the Netherlands, and Spain, is managed through International Fleet Financing No. 2 B.V., a special purpose subsidiary. The proceeds from the facility are used by certain Hertz fleet subsidiaries to purchase rental vehicles, with those vehicles serving as collateral for the financing.
In connection with the issuance of the new Class C Notes, both the Issuer Facility Agreement and the Master Definitions and Constructions Agreement were amended and restated as of Thursday. The company noted that its international operating subsidiaries lease the vehicles from the fleet companies for customer rentals.
Hertz Global Holdings, Inc. common stock trades on The Nasdaq Stock Market under the symbol HTZ. Warrants to purchase common stock are listed as HTZWW. Despite recent market volatility, the stock has shown strong momentum with a 91.8% return over the past six months. For deeper insights into Hertz’s financial health and detailed analysis, investors can access comprehensive research reports and additional ProTips through InvestingPro.
This article is based on a press release statement and information disclosed in a SEC filing.
In other recent news, Hertz Global Holdings has made significant amendments to its European asset-backed securitization facility, issuing €100 million in new Class C Notes. These notes, carrying a fixed interest rate of 10.54%, are set to mature in April 2027 and are subordinate to existing notes within the structure. Additionally, Hertz announced the results of its annual stockholder meeting, where four directors were elected to the board, and Ernst & Young LLP was ratified as the company’s independent auditor for 2025.
Analyst firms have been active with their evaluations of Hertz. Jefferies has reduced its price target for Hertz stock from $7.00 to $6.00 while maintaining a Hold rating, citing weaker-than-expected first-quarter earnings. Meanwhile, JPMorgan has reiterated its Underweight rating following a larger-than-expected EBITDA loss of $325 million, attributing it to weaker sales trends and higher expenses.
Goldman Sachs continues to maintain a Sell rating with a price target of $3.00, following Hertz’s decision to reduce its fleet size, which impacted revenue. The firm expressed concerns over Hertz’s ability to regain lost market share and achieve its long-term financial targets. Despite these challenges, Hertz is focusing on improving vehicle depreciation per unit and maintaining profitable pricing strategies. These developments highlight the ongoing efforts and challenges Hertz faces in its financial and operational strategies.
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