Hertz Starts $750 Million Debt Sale to Bolster Balance Sheet

-- Hertz Global Holdings Inc. is looking to raise $750 million in a two-part junk bond offering as it works to bolster its balance sheet after a misstep on its electric vehicle fleet. The car rental company is offering $500 million in first-lien secured notes maturing in 2029 and $250 million of second-lien exchangeable notes maturing the same year, according to a statement Thursday. Read this next: How Hertz’s Bet on Teslas Went Horribly Sideways Hertz has received anchor orders from CK Amarillo LP — a fund set up by Certares Management and Knighthead Capital Management — and another investor, which have committed to purchase $250 million of the exchangeable notes, according to the company statement. S&P Global Ratings cut Hertz’s credit rating to B on Thursday, citing higher debt and interest expenses associated with the new bonds, while Fitch Ratings said it was considering downgrading the company.