Investing.com -- Avis Budget Group Inc shares fell more than 6% on Wednesday after competitor Hertz Global Holdings Inc reduced its second-quarter outlook and revealed plans for new share and debt offerings.

Hertz shares dropped over 26% after the company lowered its second-quarter 2026 adjusted corporate EBITDA forecast to a range of $50 million to $80 million.

The revision is dut to a weakness in the used car market, Hertz said. Vehicle sale losses in May 2026 eliminated gains from April 2026, pushing net depreciation per unit per month to approximately $300 for the quarter.

Hertz also announced a $300 million private offering of exchangeable senior first-lien secured PIK notes due 2030. Initial purchasers have an option to purchase up to an additional $45 million.

Additionally, the company entered a $100 million share lending arrangement with J.P. Morgan Securities LLC. Under the agreement, J.P. Morgan will sell the borrowed shares and keep all proceeds, with Hertz receiving only a nominal lending fee.