Hertz notes drop after company nixes share offering; U.S. Steel better on stock sale

By James McCandless

San Antonio, June 18 – The distressed market fixated Thursday on names attempting to raise new capital to weather the pandemic and bankruptcy.

Hertz Global Holdings, Inc.’s notes lost ground after the company announced it would be canceling its common stock sale following regulatory scrutiny.

The 6¼% senior notes due 2022 fell 6 points to close at 30½ bid. The 5½% senior notes due 2024 dropped 7 points to close at 31 bid.

In a Thursday filing with the Securities and Exchange Commission, the Estero, Fla.-based car rental company’s board said that it would be suspending a $500 million offering of additional common stock.

After the regulator said on Wednesday that it had “comments” on the offering, the name originally said that it would put a hold on the offering in order to clear up any concerns.

Reports indicated that Hertz would work toward a $1 billion bankruptcy loan instead of common stock.

Meanwhile, United States Steel Corp.’s issues moved to better levels after the company sold $429 million in additional common stock.

The 6 7/8% senior notes due 2025 rose 1½ points to close at 77 bid. The 6¼% senior notes due 2026 grabbed 1¼ points to close at 74½ bid.

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