Jun 20, 2024 - Economy
Charted: That Hertz
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Hertz is issuing $750 million in secured notes as the rental car company tries to get back on its financial feet.
The big picture: The company is hoping to bolster its liquidity as it's reeling from a massive depreciation in its vehicle fleet pegged to the sale of 30,000 EVs after its fleet costs ballooned.
- Hertz is hoping the pivot back to gas-powered vehicles will bolster its finances.
- But the company warned today in an SEC filing that if "we are unable to sell our fleet" at anticipated prices, "cash infusions may be required," which "could materially adversely affect our financial condition and liquidity."
The impact: Hertz shares gained over 13% today, but they're down 66% on the year.
Flashback: Hertz filed for bankruptcy protection in 2020 when the pandemic cratered travel.
