(Reuters) – Car rental company Hertz is considering selling at least $700 million in secured debt and offering convertible notes as it looks to strengthen its balance sheet, Bloomberg News reported on Thursday, citing people familiar with the matter.
The company’s shares fell 12.6% to a record low of $3.47 after the report and closed down about 5%.
Hertz did not immediately respond to a Reuters request for comment.
The company’s advisers have begun contacting potential investors about securing the debt, the report said, adding that final decisions have not yet been made and the size and terms of any financing could change.
Earlier this week, Hertz named Spirit Airlines (NYSE:) CFO Scott Haralson is the new chief financial officer looking to stabilize its business after a failed bet on electric vehicles sent losses soaring.
In April, Hertz reported a quarterly loss of $1.28 per share, far wider than Wall Street’s 44-cent loss as it cut its electric vehicle business due to weak demand and higher repair costs. and plans to sell about 30,000 vehicles.
The stock has crashed from its 2021 re-IPO price of $29 when the company debuted on the Nasdaq after emerging from bankruptcy.
Last week, Bloomberg News reported that Hertz was exploring financing options.