The company confirmed the pricing of $350 million in 6.75% exchangeable senior first-lien secured notes due in 2030, alongside the pricing of 37 million borrowed shares at $2.70 each. Proceeds from these maneuvers are earmarked to pay down existing revolving credit facilities and support general corporate operations.
In section Market Quotes
Hertz Shares Slide as Debt Offering and Weak Guidance Hit Market
Hertz Global Holdings saw its stock plummet 13.5% to $2.58 on Thursday after the rental car giant announced an upsized $350 million debt offering. The sharp decline deepens a difficult year for the company, which has now shed half of its market value since the start of 2024.
This financial pivot arrives on the heels of a grim earnings update issued Wednesday. Hertz signaled that its second-quarter adjusted earnings before interest, taxes, and amortization will likely settle between $50 million and $80 million, hitting the lower bound of previous projections. Management also reported net depreciation of approximately $300 per unit per month, a figure driven by sustained losses on vehicle sales throughout May.
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