Hertz considers $700 million sale of secured debt plus convertibles, Bloomberg says

(Reuters) – Rental car firm Hertz is weighing a sale of at least $700 million in secured debt and a convertible notes offering, as it looks to shore up its balance sheet, Bloomberg News reported on Thursday, citing people with knowledge of the matter.

Shares of the company plunged as much as 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 advisors have started contacting potential investors regarding the issue of secured debt, according to the report, which added final decisions have not been made, and the size and terms of any financing could change.

Hertz earlier this week named Spirit Airlines (NYSE:) CFO Scott Haralson its new finance chief, as it looks to steady its business after a failed bet on electric vehicles sent its losses ballooning.

In April, Hertz reported a quarterly loss of $1.28 per share, much wider than the 44-cent loss Wall Street expected, as it worked down its EV business due to weak demand and higher repair costs, with plans to sell about 30,000 vehicles.

The stock has crashed from its 2021 “re-IPO” price of $29, when the company debuted on Nasdaq since emerging from bankruptcy.

Bloomberg News reported last week that Hertz was exploring options to raise financing.