NEW YORK (TheStreet) -- Shares of Hertz Global Holdings (HTZ) - Get Report are rising by 6.04% to $9.05 late Wednesday afternoon, after the Estero, FL-based holding company announced the spinoff of its Hertz Equipment Rental brand.
The company announced yesterday that it intends to divide its rental equipment business into two new subsidiaries, Herc Spinoff Escrow Issuer and Herc Spinoff Escrow Issuer, collectively to be known as the "Escrow Issuers."
The spinoff was formed with the intention of offering $1.1 billion of senior secured second priority notes, due in 2022, and senior secured second priority notes, due in 2024, in a private offering, Hertz stated.
Gross proceeds and an undisclosed amount related to interest, accrued on the notes, will be deposited into an escrow account, according to Hertz.
Hertz is engaged primarily in the business of renting and leasing cars through its Hertz, Dollar, Thrifty and Firefly brands, and equipment through Hertz Equipment Rental.
Separately, TheStreet Ratings rated Hertz Global Holdings as a "sell" with a score of D+.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
This is driven by multiple weaknesses, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks that are covered.
The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk and weak operating cash flow.
You can view the full analysis from the report here: HTZ