NEW YORK (TheStreet) -- Hertz Global Holdings (HTZ) shares are up 1.91% to $21.91 in trading on Tuesday after the car rental company reached a waiver agreement with several lenders regarding the company's delay in providing updated financial statements.
The company will have to pay lenders a higher interest rate on a March 2011 credit agreement that involved $2.1 billion in senior secured notes and $200 million of credit-linked deposits due to delays in the company providing revised financial statements from 2011-2013
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The company announced last month that it would have to restate its financial results for the previous three years due to accounting issues that called into question the validity of its financial statements.
The company can now defer furnishing the financial results as a result of the agreement while also waiving the defaults that arose from the delays in the reporting of the company's financial results from that time period.
TheStreet Ratings team rates HERTZ GLOBAL HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."