|Bid||1.2200 x 43500|
|Ask||0.0000 x 29200|
|Day's range||1.2100 - 1.2600|
|52-week range||0.4000 - 20.8500|
|Beta (5Y monthly)||1.68|
|PE ratio (TTM)||N/A|
|Earnings date||02 Nov 2020 - 06 Nov 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||20.00|
(Bloomberg) -- Hertz Global Holdings Inc. is negotiating with its creditors for a loan to bolster operations after months of funding itself during bankruptcy, according to people with knowledge of the talks.The rental-car company is mulling two tentative offers for loans of about $1 billion to $1.5 billion, said one of the people, who asked not to be named discussing the private negotiations. The proposals came from a group of Hertz’s unsecured creditors and a separate set of first-lien creditors, the person said. The offers aren’t yet formal and could fall through as the parties work on the details, the people added.A representative for Estero, Florida-based Hertz didn’t immediately respond to a request for comment.Hertz filed for bankruptcy in May without a customary debtor-in-possession loan already in place, opting instead to rely on a large stockpile of cash on hand. The company first disclosed it would seek a DIP loan in August, after its attempt to raise money by selling potentially worthless shares failed.Cash ConcernsThe company meanwhile has resolved a standoff with lenders over leases on its fleet and benefited from rebounding used-vehicle prices.Hertz said in a previous filing that it’s looking for new sources of cash. The travel business remains in a deep slump and much of the proceeds from vehicle sales have been going to pay off creditors.Hertz had sought to avoid raising traditional bankruptcy funding while it negotiated a debt restructuring with asset-backed securities holders who indirectly control the company’s rental car fleet.The rental firm ultimately agreed to pay the lenders $650 million to cover 2020 lease obligations, an amount that’s likely less than what it would normally owe to cover lease payments and depreciation costs. Even so, weak demand in its core business and pandemic-related uncertainty leaves it in need of more cash.Revenue fell 67% in the second quarter from a year earlier, leading to a $587 million loss. It had about $1.4 billion of cash as of June 30.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Brokerage firms such as Robinhood Financial LLC, zero-commission trading, the surge in exchange-traded funds and the growth in fractional share ownership have all had a hand in luring a new generation of investors to the stock market in recent years. If anything, the Covid-19 pandemic has accelerated the trends, as evidenced by the unnaturally high prices paid for shares of bankrupt Hertz Global Holdings Inc. or Tesla Inc.’s soaring stock price.Now comes a new Yahoo Finance Harris poll that reveals other changes in the investing landscape that have far-reaching implications for both the government and companies. For one, more than half the racial gap in individual stock ownership has disappeared essentially overnight. Also, both younger and older Americans are now more likely to own stocks than those in their prime, middle-age asset accumulation years. More than one-third of those middle-aged investors have greatly reduced their stock holdings.What does it mean? Of course, it could turn out to just be a millennial fad, or a transitory effect of the lockdowns, or even just an outlier survey. But if the results represent a long-term trend they could overturn some long-held assumptions. For one, the political appeal of running an anti-Wall Street platform may not be as effective among young and non-White voters as in the past. And claiming credit for good stock market performance might not matter as much to middle-aged White voters.Public corporations may find that their individual shareholders are becoming more diverse than their executive ranks and boards. Most of the pressure to date for corporate diversity has come from institutional shareholders. Individual shareholders seldom vote, and while the new, young and non-White shareholders probably don’t represent a significant block of shares, the cultural view of public companies is very much influenced by shareholder characteristics. Companies that can win the loyalty of new investors, especially younger ones, can enjoy relatively cheaper and more secure capital over long periods of time – as evidenced by Tesla.The table below shows the percentage of U.S. households owning at least one individual stock not held in a retirement account from the 2016 Survey of Consumer Finances and the September 2020 YFH poll, by race.Owning individual stocks has a large effect on people’s attitudes in politics, financial decisions and cultural identification. It’s true that all Americans have a stake in the stock market, with more than half exposed through mutual funds and retirement accounts. Workers covered by public pensions are indirectly exposed because the ability of funds to make promised payments depends on the stock market’s performance. Even people with no assets linked to stocks are helped when the market goes up because it tends to lead to more jobs and higher wages. But these kinds of indirect exposures are less intense than what investors who pick and own individual stocks directly feel.While the chart above shows the total change since 2016, there is reason to believe that most of it occurred in 2020. The next chart addresses that idea, asking respondents who owned individual stocks if they reduced or increased holdings in 2020. The remainder said they kept their stock investments about the same.Similar percentages reduced holdings among all races, but Blacks and especially Hispanics were much more likely than Whites to increase.Young and old people were more likely to own individual stocks in 2020 than 2016, but in the prime middle-age asset accumulation years, more than one-third of individual stockholders sold off their stocks. A 40-year-old is now more likely to own individual stocks than a 60-year-old.These huge demographic changes have occurred without much change in stockholding patterns by income, education, family type, home ownership or region—factors normally considered more important to investment behavior.The stock market was invented mainly for older, wealthy, white men and any movement toward broadening the base was scotched by the Great Depression. It wasn’t until the Baby Boomers reached working age that the market began to democratize, mainly via low-cost index funds and equity selections in tax-deferred retirement accounts, and the change did not take strongly among non-whites.Generation X imitated its parents, but as Millennials reach working ages a new paradigm may be emerging—aggressive equity participation by young people of all races, centered on active trading of individual stocks. The dollar amounts are small today, but the long-term impact on markets, the economy and society could be profound.The Elizabethan poet Thomas Nashe wrote “A Litany in Time of Plague” in which he warned, “Rich men, trust not in wealth, Gold cannot buy you health.” Millions of non-rich Americans, mostly young and non-White, are using this time of plague to start trusting in stocks. That may prove to be one of the bigger social changes from pandemic.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Aaron Brown is a former managing director and head of financial market research at AQR Capital Management. He is the author of "The Poker Face of Wall Street." He may have a stake in the areas he writes about.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Hertz Global Holdings Inc. must change its plan to pay 14 top executives up to $5.4 million in bonuses if it wants win approval for the incentive program, says the judge overseeing the car renter’s bankruptcy.Judge Mary Walrath sided with opponents of the payouts, who argued that the bonus program comes too soon after $16.2 million in retention money Hertz agreed to hand out to about 340 employees just days before it filed for bankruptcy in May. Walrath’s order also nixed a new plan that would have split as much as $9.2 million among about 295 lower-ranking managers.“It seems offensive to give senior executives bonuses” when some of them got retention payments immediately before Hertz headed for court, Walrath said in a hearing held by telephone on Thursday.Under the pre-bankruptcy retention plan, Chief Executive Officer Paul Stone received $700,000. With the new plan, Stone could have collected as much as $1.6 million.Bonus CurbsThe U.S. Bankruptcy Code restricts bonus payments to top executives, in part by requiring them to be tied to performance goals. Retention payments are allowed, but have tighter restrictions that make them harder to justify.Congress wrote the rules to ensure managers who drove a company into bankruptcy were not rewarded for staying around during a Chapter 11 case, Walrath said.“More has to be done to show why employees who got retention bonuses and agreed to stay with the company are not going to do their best to see that the company survives and succeeds,” Walrath said.Representatives for the company, based in Estero, Florida, didn’t immediately return an email seeking comment.Revisions NeededThe judge will consider approving the bonuses if the company either submits better information to justify the payments, or revises the financial and business targets that Hertz must hit for the employees to get paid.A “relatively large percentage” of the employees who would be eligible for the new bonus program also got retention bonuses, Hertz bankruptcy attorney Jason Zakia said during the hearing.As part of the original deal, employees agreed to forgo their 2020 bonuses, Bloomberg Law previously reported. The new bonuses “are in reality the 2020 bonuses under a different name,” the U.S. Trustee has said.A group of retired Hertz executives, including former general counsel Paul M. Tschirhart, and the U.S. Trustee’s Office argued that the program doesn’t meet the legal standards for paying bonuses in bankruptcy.The case is Hertz Corp. 20-11218, U.S. Bankruptcy Court, District of Delaware (Wilmington)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.