Hertz Stock Offering
Hertz prices 37 million common stock offering; company will not receive proceeds
Hertz Global Holdings (NASDAQ: HTZ) priced an offering of 37,037,037 shares of common stock at $2.70 per share on June 25, 2026, according to Business Wire. The company will not receive any cash from the sale. Instead, the shares are being loaned to J.P. Morgan Securities LLC to support a separate $350 million private debt deal.
The announcement came one day after HTZ stock plunged as much as 41% — its worst single-day drop ever — after Hertz slashed its Q2 2026 earnings guidance, ADVFN reported. The twin moves paint a stark picture of a company fighting to stay solvent just five years after emerging from bankruptcy.
How the Share Loan and Debt Deal Are Linked
The share offering is not a traditional stock sale. Hertz loans the 37 million shares to J.P. Morgan, which then lends them to investors buying the new debt notes. Those investors can use the borrowed shares to hedge their bets, according to Business Wire. Hertz gets nothing from this transaction — no cash, no proceeds.
The debt deal it supports is a $350 million issuance of Exchangeable Senior First-Lien Secured PIK Notes due 2030, upsized from an initial $300 million target, Yahoo Finance reported. The notes carry a 6.75% interest rate — split evenly between cash (3.375%) and PIK (3.375%). PIK stands for Payment-In-Kind, meaning half the interest is paid with more debt, not cash. The note offering is set to close around June 29, 2026. If it does not close, the share offering is canceled.
A $20 Billion Debt Load and a Brutal EV Hangover
Hertz's financial distress traces back to a disastrous bet on electric vehicles. In 2021, the company ordered 100,000 Teslas. By 2024, it was forced to dump 30,000 EVs at massive losses because repair costs were sky-high and resale values had collapsed. The fallout left deep scars on the balance sheet.
Today, Hertz carries roughly $20.6 billion in total debt, Yahoo Finance reported. The company now expects net depreciation per vehicle to hit $300 per month in Q2 2026 — a brutal figure driven by weak used-car prices. Q2 EBITDA guidance was cut to just $50 million to $80 million. Chief Market Strategist Mark Hackett of Nationwide said the stock's collapse "may signal capitulation of those that had been holding on," according to MarketScreener.
S&P Assigns 'B-' Rating as Analysts Stay Cautious
S&P Global Ratings assigned a 'B-' rating to the new notes — deep in junk territory. S&P acknowledged the deal "improves the company's liquidity position somewhat" but flagged "weaker credit metrics and tighter liquidity" as serious concerns. Fitch Ratings maintains a Negative outlook on the company overall.
Wall Street analysts hold a consensus "Moderate Sell" rating on HTZ shares, according to Yahoo Finance. The PIK note structure worries some analysts. Because half the interest is paid in additional debt rather than cash, the total amount owed grows over time — even if Hertz never misses a payment. CEO Gil West, appointed in April 2024, has called his plan a strategy "laser-focused on delivering sustainable returns," but the market remains deeply skeptical.
What Happens Next for Hertz Shareholders
The 37 million new shares dilute existing stockholders. Hertz's market cap had already cratered to roughly $1.6 billion after the June 24 selloff. At $2.70 per share, the offering price is a far cry from where the stock traded even months ago. The net proceeds from the $350 million note deal — about $339.5 million — will be used to pay down Hertz's revolving credit line, Business Wire reported.
The company is also still unwinding its EV fleet and replacing those vehicles with traditional gas-powered cars. That transition is costly and slow. If used-car prices keep falling, depreciation costs will remain high — and the benefits of this capital raise could evaporate quickly. The next major test comes with the June 29 closing date, when both deals must successfully complete.
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