Hertz Global Gets Commitments For $1.65 Bln DIP Financing - Quick Facts

(RTTNews) - Vehicle rental company Hertz Global Holdings, Inc. (HTZ) announced Friday that it has secured commitments for debtor-in-possession (DIP) financing totaling $1.65 billion and has filed a motion for approval of the financing by the U.S. Bankruptcy Court for the District of Delaware.

On July 22, Hertz Global and certain of its U.S. and Canadian subsidiaries have filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

This new financing will provide additional financial flexibility as Hertz continues to navigate the pandemic's effects on the travel industry and take steps to best position its business for the future.

The proposed DIP financing will support the Company as it moves through its next stage of its Chapter 11 process. The financing is to be provided by certain of the Company's pre-petition first-lien lenders and is expected to be structured as a delayed draw term loan debtor facility.

Up to $1 billion can be used to provide equity for vehicle acquisition in the U.S. and Canada and up to $800 million can be used for working capital and general corporate purposes.

The financing is subject to finalization of definitive documentation, Court approval and other customary conditions, and a hearing is scheduled for October 29, 2020.