World News – CA – Hertz secures $ 1 billion loan from Apollo bankruptcy, others

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(Bloomberg) – Hertz Global Holdings Inc has arranged a new $ 165 billion financing to help it reorganize in the event of bankruptcy Shares more than doubled after the plan was announced

If the bankruptcy loan gets court approval, a group of the company’s senior lenders will provide the money at an initial interest rate of 725 percentage points above the interbank offered rate. London, the car rental giant said on Friday The group will also collect an undisclosed amount in fees Lenders who have signed a letter pledging to fund the loan include Apollo Global Management, Diameter Capital Partners and Silver Point Capital, according to court documents

Hertz stock climbed to 178% on Friday morning in New York to trade at $ 2.86

Up to $ 1 billion in debt can be used for vehicle acquisition in the US and Canada, while up to $ 800 million can be used for working capital and general needs of the company, Hertz said in a statement

The proposed loan is a sign that senior lenders have confidence in Hertz’s ability to reorganize and repay them The loan matures at the end of 2021 and has a limited number of restrictions that would result in default, a Hertz said in court documents As part of the deal, the company is to file a Chapter 11 reorganization plan by August 1, 2021

Hertz filed for bankruptcy in May when the near total shutdown of the global travel industry led to a dramatic drop in rentals Despite the Chapter 11 filing, which would normally wipe out shareholders, Hertz’s share price remained so high that the company tried unsuccessfully to sell shares to finance the deal

Bloomberg earlier reported that the car rental company was negotiating with creditors for a possible loan to put it through the reorganization process The new financing must be approved by the Hertz bankruptcy judge and a hearing is scheduled for October 29

The case is Hertz Corp 20-11218, US Bankruptcy Court, District of Delaware (Wilmington) To view the Bloomberg Law record, click here

Hertz, Finance, Hertz Global Holdings Inc, Equity Financing, Debtors in Possession

News from around the world – CA – Hertz secures $ 1 loan of 65 billion from Apollo bankruptcy, others


SOURCE: https://www.w24news.com

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