Hertz Spins Out Oro Mobility With $80M Outside Investment, Retains Majority Stake
HTZ sits 34% above its 52-week low of $1.45.
Summary
Hertz sold a 15.86% economic stake in its Oro Mobility unit to a consortium including Cohen Private Ventures, Certares and Knighthead for $80.89M, and repurchased $51.1M of exchangeable notes as part of the deal. Hertz keeps majority economic ownership and stays Oro's fleet and corporate services partner, so it books outside capital against a unit it still controls rather than shedding the business. The cash is modest next to an $18.75B debt load, but the buyer group matters: Knighthead and Certares are already inside the Hertz capital structure, and a Knighthead-linked director joined the board on October 1. This follows the September 30 Reuters report that Hertz hired PJT Partners to extend maturities and the October 7 report that creditors are organizing with Evercore — the company is raising money and buying back notes while negotiating with lenders.
At the time of this announcement, HTZ was trading at $1.95 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $655.9M. The 52-week trading range was $1.45 to $8.18. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.