The car rental firm plans to utilize the proceeds to pay down a portion of its $2 billion revolving credit facility and enhance its liquidity.

Hertz's decision to seek additional funding comes after facing declining demand for EVs, which resulted in significant losses for the company. In early June, Hertz appointed Scott Haralson, the CFO of Spirit Airlines, as its new finance chief. The appointment came as the car rental firm faced mounting losses due to the decreasing demand for EVs in its fleet.

As part of its efforts to mitigate the impact of dwindling EV demand on its earnings, Hertz is streamlining its business strategy and aims to sell a total of 30,000 EVs this year, including an additional 10,000 units. However, the company acknowledged on Thursday that it may not be able to achieve the remaining 11,000 planned EV disposals within the expected timeframe.

The car rental firm also anticipates continued elevated vehicle depreciation throughout 2024. In the first quarter ended March 31, Hertz incurred a substantial $588 million in vehicle depreciation costs, with $195 million attributed to EVs held for sale. To address these costs, Hertz intends to accelerate the refreshment of its vehicle fleet and reduce its reliance on EVs, resulting in some depreciation expenses being recorded earlier than initially anticipated.

Given the impact of these expenses, Hertz expects an adjusted corporate loss before interest, taxes, depreciation, and amortization in the range of $435 million to $495 million for the second quarter of this year. This marks a significant decline compared to the core profit of $347 million reported by the company in the previous year.

Hertz's shares have suffered a considerable decline in value, plummeting over 70% since the beginning of this year. As of Thursday, the company's shares were down 3% in morning trade, reflecting the challenges it faces in navigating the evolving market dynamics and rebounding from its foray into EVs.

The Estero, Florida-based firm remains focused on restoring its financial position and weathering the ongoing challenges posed by the EV market. With the proposed $750 million notes offering, Hertz aims to strengthen its balance sheet and improve its liquidity, providing a foundation for future growth and stability.