Hertz (HTZ) Stock Rallies After Securing Commitments of $1.65 Billion

Hertz (NYSE: HTZ) stock has surged 98% after the bankrupt company announced it has secured financing totalling $1.65 billion. 

The company said up to $1 billion of the debtor-in-possession (DIP) financing can be used for vehicle acquisition in the US and Canada, and up to $800 million can be used for working capital generation and corporate purchases. 

“This new financing will provide additional financial flexibility as we continue to navigate the pandemic’s effects on the travel industry and take steps to best position our business for the future. We are pleased with the strong interest from our pre-petition first-lien lenders and appreciate their support of Hertz and our future opportunities as a rental car leader,” commented Hertz President Paul Stone.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Hertz said it has filed a motion for approval of the financing by the US Bankruptcy Court for the District of Delaware. 

Back in May, the company filed for Chapter 11 bankruptcy after its business almost evaporated due to t the coronavirus pandemic. This year the car rental company’s share price is down 93.46%.

Today’s news has seen its stock price rally 122% to $2.29 per share after closing Thursday’s session at $1.02.

PEOPLE WHO READ THIS ALSO VIEWED:

• SG Blocks stock skyrockets after Blink Charging deal
• Trade stocks with Plus500
• Learn stock trading strategies