Shares of Hertz Global Holdings, Inc. (HTZ) tumbled 5.09% in after-hours trading on Thursday, following reports that the car rental giant is eyeing a $500 million debt raise. According to Bloomberg News, this financial move is being considered ahead of an impending litigation payment, raising concerns among investors about the company's financial health and future obligations.

The significant after-hours decline suggests that market participants are wary of the potential impact this debt increase could have on Hertz's balance sheet. The news of a substantial litigation payment on the horizon has likely contributed to the negative sentiment, as it implies additional financial strain on the company.

While specific details about the litigation or the exact purpose of the debt raise were not immediately available, the market's reaction indicates that investors are reassessing their positions in light of these developments. As Hertz navigates these financial challenges, stakeholders will be closely monitoring the company's strategies to manage its debt load and address pending legal obligations.