HERTZ HOLDINGS: Suspends the $500M Stock Sale Pending SEC Review

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Hertz said on June 17, 2020, it has put its plans to sell $500 million worth of stock on hold because the offering is being reviewed by the Securities and Exchange Commission.

On June 12, 2020, the United States Bankruptcy Court for the District of Delaware granted the motion of Hertz Global Holdings, Inc. for authority to enter into an Offer and Sale Agreement and to sell shares of its common stock, par value $0.01 per share. The Company commenced an “at the market” offering of up to $500 million of its Common Stock after the filing on June 15, 2020, of a prospectus supplement under its effective shelf registration statement on Form S-3 (File No. 333-231878) (the “ATM Program”).

In the afternoon on June 15, 2020, the Staff of the Securities and Exchange Commission’s Division of Corporation Finance verbally notified the Company that the Staff was reviewing the Prospectus Supplement. Promptly thereafter, the Company suspended all sales of Common Stock under the ATM Program.

Effective June 18, 2020, the Finance Committee of the Board of Directors determined that it was in the best interests of the Company to terminate the ATM Program and directed that the ATM Program be terminated.

About Hertz Corp.

Hertz Corp. and its subsidiaries operate a worldwide vehicle rental business under the Hertz, Dollar, and Thrifty brands, with car rental locations in North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand. The Company also operates a vehicle leasing and fleet management solutions business.

On May 22, 2020, The Hertz Corporation and certain of its U.S. and Canadian subsidiaries and affiliates filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court (Bankr. D. Del. Case No. 20-11218).

The Hon. Mary F. Walrath is the presiding judge.

White & Case LLP is serving as legal advisor, Moelis & Co. is serving as investment banker, and FTI Consulting is serving as financial advisor. Richards, Layton & Finger, P.A., is the local counsel.

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