Car rental firm Hertz Global Holdings Inc. has unveiled plans to buy back as much as $2 billion in common stock in efforts to realign its finances following its bankruptcy protection exit, Bloomberg reported.
- Hertz’ repurchase program was announced earlier on Monday and will take effect immediately. It will include an initial $200 million approved at the time of the firm’s listing on the Nasdaq earlier this month.
- The company last week announced a buyback program of nearly $1.9 billion in preferred stock as part of its efforts to scrap expensive bankruptcy-era financing and replace it with cheaper debt.
- Hertz said it would keep its net corporate leverage no greater than 1.5 times after selling a $1.5-billion high-yield bond earlier this month to repay part of preferred equity provided by Apollo Global Management Inc.
Shares of the firm climbed 6% to $25.30 at 9:36 a.m. in New York. HTZ is up 2.60%.