Breaking News-Hertz Corp IPO UPDATE
This was a bit confusing. There were some conflicting news releases on the Hertz IPO. Essentially, the original IPO was withdrawn, a new IPO must have been simultaneously refiled, which included a $31.5 million tax restatement. Additionally, some reports mentioned Ford as the owner of Hertz, but the company was sold to a consortium of private equity firms in December of 2005. The company estimates the value of the offering at $1 Billion.
So the deal is still on. (Hertz has an exclusive relationship with Sirius)
"Dow Jones Newswires, 7/14/2006, 4:16 PM
Ford's Hertz Corp withdraws IPO."
"Ford's Hertz Withdraws Proposed IPO
(Realtimetraders.com 07/14 16:28:19)
Auto rental firm Hertz announced Friday that it has withdrawn its proposed initial public offering. The company did not give a reason for the withdrawal in the SEC filing revealing the decision.
In mid-2005, the company, which is owned by Ford Motor Company, submitted papers to the SEC for the IPO. The company planned to raise up to $100 million through the offering, though it did not reveal the number of shares it planned to sell or an estimated price range for the transaction."
"Hertz files to raise up to $1 bln in IPO
(CBS MarketWatch 07/14 16:42:53)
SAN FRANCISCO (MarketWatch) -- Hertz Global Holdings Inc. after Friday'sclosing bell filed to raise up to $1 billion in an initial public offering.Goldman Sachs & Co., Lehman Brothers and Merrill Lynch & Co. are leadingthe deal's underwriting. Park Ridge, N.J.-based Hertz, a former subsidiary ofFord Motor Co. , said it plans to apply to list its common shares on the NewYork Stock Exchange under the symbol "HTZ." Clayton Dubilier & Rice Inc., Carlyle Group and Merrill Lynch Global Private Equity completed their $15billion acquisition of the vehicle rental company in December 2005."
"Hertz Restates 2005 Results, Files For $1 Billion IPO
DOW JONES NEWSWIRES July 14, 2006 5:32 p.m.
Hertz Corp. restated its 2005 results to correct a tax issue Friday and filed for an initial public offering. Hertz Corp., which filed the IPO under the name Hertz Global Holdings Inc., plans to re-enter the public market after being taken private six-and-a-half months ago.
For filing purposes, the company estimated the value of the offering at $1 billion, but that figure doesn't necessarily reflect the ultimate value of the offering.
The restatement will lower Hertz's net income for Jan. 1, 2005, through Dec. 20, 2005, by $27.5 million, to $371.3 million, Hertz said in a filing with the Securities and Exchange Commission.
Hertz was acquired from Ford Motor Co. by a private-equity group -- composed of Clayton Dubilier & Rice, the Carlyle Group and Merrill Lynch Global Private Equity -- on Dec. 21, 2005.
The restatement was due to an underestimation of taxes on repatriated foreign earnings while Hertz was still owned by Ford. Hertz increased the estimated tax expense by $27.5 million to $31.3 million to correct the error, according to Friday's SEC filing.
Hertz said it discovered the error in June after Ford completed a detailed study to prepare its 2005 tax return. The tax expense for Hertz's repatriated earnings was incurred while Hertz was owned by Ford, and the increased tax amount will be paid by Ford, Hertz said.
An IPO could represent a sizeable and quick profit for the private-equity firms who put up $2.3 billion of their own cash and took on an additional $13 billion in debt to purchase Hertz last year. (
See related story.)
The firms have already earned back nearly half that cash investment, having paid themselves a $1 billion special dividend by issuing additional debt."
7/14/2006 04:22:00 PM
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