Hertz has been in discussions with multiple banks, led by Barclays, on its options, which include a first-lien loan, second-lien financing or collateralizing its rental-vehicle fleet, according to a Bloomberg report.
The company has also asked the U.S. Treasury Department for a loan, according to the report.
At last check shares of the Estero, Fla., company were off 10% at $6.49. This as the wider market is lower on Friday after a three-day rally.
No decisions have been made yet, according to Bloomberg's sources, but one option is a first-lien loan that could total several hundred million dollars at a yield of about 12%.
“Like the rest of the global travel sector, Covid-19’s impact on Hertz arrived swiftly, and the reversal in customer demand has been significant,” Chief Executive Kathryn Marinello said in a statement late Thursday.
“We are aggressively taking actions to sustain operations and preserve liquidity, while confronting the issues raised by some of the most difficult economic conditions we have experienced.”
Hertz shares are down more than 60% since it reached its 52-week high, $20.85, on Feb. 20.
The company had $17 billion in debt as of the end of 2019, compared with a market capitalization of $1 billion, Bloomberg reported.