Replies to post #3464 on Hertz Global Holdings Inc (HTZ)

[jaxstraw]

It's a cashless exercise.

So for every warrant you have the right to buy one share of HTZZ for $13.80

There are tons of scenarios but I use two for exercise.

Say you have 100 warrants and the PPS hits 13.80 ....you could exercise them then and end up with 50 shares of HTZZ. (They sell 50 warrants to cover the $13.80 needed to satisfy your right to buy and the other 50 get exercised.)

If the PPS for warrants hits 27.60 it basically means every warrant has the value of the $13.80 baked in so you can exercise them all for a 1:1 basis. You would get 100 shares of HTZZ.

Ideally the price difference between the stock and warrants will always be around $14.

So if you have 100 warrants valued at 27.60 ( $2760.00) and you exercise them 1:1 you would end up with 100 shares of HTZZ valued about $4200 instead.