Investing.com -- Hertz Global Holdings shares fell more than 20% in pre-market trading Wednesday after the car rental company reduced its second-quarter earnings forecast and announced plans to raise capital through stock and debt offerings.

The company lowered its second-quarter Adjusted Corporate EBITDA outlook to a range of $50 million to $80 million in a preliminary disclosure filed with the U.S. Securities and Exchange Commission. Hertz attributed the reduction to unexpected weakness in the used car market.

Losses on vehicle sales in May 2026 offset gains recorded in April 2026, affecting the company's net depreciation per unit per month. Hertz now expects net depreciation per unit per month for the second quarter to reach approximately $300.

The company said fleet size, revenue, revenue per day, and rental days are expected to meet or slightly exceed prior expectations. Demand remains healthy and capacity utilization performed better than anticipated. Year-over-year revenue per day growth in the second quarter to date has accelerated above the trend seen in the first quarter.

Hertz also announced a proposed offering of $100 million of its common stock through a share lending arrangement with J.P. Morgan Securities LLC. Under the structure, Hertz will loan shares to J.P. Morgan Securities LLC, which will act as the share borrower and underwriter. J.P. Morgan or its affiliates will receive all proceeds from the sale of the borrowed shares.

Hertz will not receive any proceeds from the offering but will collect a nominal lending fee for the use of the shares. The share borrower indicated it intends to sell the borrowed shares and use the resulting short position to facilitate hedging transactions for investors in a separate private offering.

Additionally, Hertz Corporation, a wholly-owned indirect subsidiary of Hertz Global Holdings, intends to offer $300 million in aggregate principal amount of Exchangeable Senior First-Lien Secured PIK Notes due 2030 in a private placement to qualified institutional buyers under Rule 144A.

The notes will be exchangeable into cash, shares of Hertz common stock, or a combination, at The Hertz Corporation's election. Proceeds are intended for general corporate purposes, which may include repayment of outstanding debt.

The concurrent stock offering is contingent on closing of the notes offering, but the notes offering is not contingent on the stock offering closing. Hertz is based in Estero, Florida, and operates more than 11,000 rental locations across 160 countries.