Hertz Global Holdings (HTZ) – Shares of Get Report surged after the car rental chain said it secured $ 1.65 billion in funding to help it emerge from bankruptcy proceedings
The Estero, Fla. company said in a statement that it had « obtained debtor financing commitments in possession totaling $ 165 billion and has filed a petition for approval of the financing by the US District of Delaware Bankruptcy Court «
Hertz shares recently traded at $ 2.18, more than double their Thursday close at $ 1.03 The stock was down 93% year-to-date until Thursday as the coronavirus pandemic struck the entire travel industry
« Funding must be provided by some of the company’s pre-petition senior lenders and should be structured as a deferred term loan facility, » Hertz said
« Up to $ 1 billion can be used to provide equity for vehicle acquisition in the US and Canada Up to $ 800 million can be used for working capital and general purposes of the company «
CEO Paul Stone said « the new funding will provide additional financial flexibility as we continue to manage the effects of the pandemic on the travel industry and take action to best position our company for the future
« We are delighted with the strong interest shown by our senior lenders ahead of the petition and appreciate their support for Hertz and our future opportunities as a leader in car rental »
Moelis is the investment banker of the company, FTI Consulting is the financial advisor to Hertz and White & Case is the legal advisor
Dan is a freelance writer whose work has appeared in the Wall Street Journal, Barron’s, Institutional Investor, The Washington Post and other publications
Hertz, Finance, Hertz Global Holdings Inc, Stock
World News – US – Hertz Shares Deal for $ 1 65B Debtor Financing
SOURCE: https://www.w24news.com
