Hertz Global Holdings warned that unexpected softness in the used car market will push second-quarter adjusted corporate EBITDA to no more than $80 million, short of analyst estimates. The company disclosed the profit headwind alongside plans for a $100 million stock offering and a concurrent $300 million offering of payment-in-kind notes, with the shares used by investors to hedge their note purchases. Proceeds from the notes will repay outstanding debts, while Hertz will not receive proceeds directly from the share sale. Shares tumbled as much as 28% in premarket trading and were down 21% as of 8:40 a.m. in New York.
Hertz Global Holdings IncUsed car market softness reduces rental car resale values, hurting profit.