Hertz announces $250 mln exchangeable offering for debt refinancing; shares rise

Shares of car-rental firm Hertz Global HTZ.O up 9.6% in extended trading to $7.64 as it seeks capital raise to refinance some debt

Estero, Florida-based HTZ announces private offering of $250 mln exchangeable notes due 2030

It intends to use net offering proceeds to fund partial redemption or repurchase of its outstanding notes due 2026 on or before Dec 31, 2025

It also plans to use a portion of proceeds to pay cost of capped calls, derivative transactions employed to help offset potential dilution

Pershing Square Capital Management intends to enter into swap transactions in which Pershing will obtain long economic exposure to approx $100 mln of HTZ's common stock, per the statement

Earlier this year, hedge fund billionaire Bill Ackman boosted his stake in HTZ through his investment management vehicle Pershing, expressing confidence in the management's efforts to reduce costs to improve profit margins over the next several years

HTZ shares on Weds edged up 0.1% to close at $6.97, up 90% YTD

Of 10 analysts covering the stock, 6 rate "hold" and 4 rate "sell"; median PT is $3.55, per LSEG data