Hertz spirals lower as company seeks financial rescue; Rite Aid drops on earnings

By James McCandless

San Antonio, April 16 – The distressed debt space experienced a volatile Thursday as earnings season kicked off.

Hertz Global Holdings, Inc.’s notes spiraled downward as the company seeks a financial rescue package from the government amid the Covid-19 pandemic.

The 5½% senior notes due 2024 dropped 10½ points to close at 41½ bid. The 6¼% senior notes due 2022 crashed 15¼ points to close at 51¼ bid.

The Estero, Fla.-based car rental company’s structure saw declines amid reports that it is seeking a financial rescue package amid the market turmoil caused by the coronavirus pandemic.

The company is working to deal with a budget gap of $1 billion to $1.5 billion as the travel industry grinds to a halt amid government stay-at-home orders.

Meanwhile, in the retail space, Rite Aid Corp.’s issues dropped after releasing a lukewarm earnings report.

The 6 1/8% senior notes due 2023 gave up 1¾ points to close at 90 bid.

Early Thursday morning, the Camp Hill, Pa.-based drug store chain released its earnings report for the fourth quarter.

The company showed a loss of 37 cents per share, wider than what analysts expected at a 13 cents per share loss.

Revenues, however, beat estimates at $5.73 billion.

© 2015 Prospect News.
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