Hertz Global Secures Fleet Financing

By Staff Writer November 23, 2020

Hertz Global Holdings Inc. announced that it has secured commitments for fleet financing totaling $4 billion and has filed a motion for approval of The Hertz Corporation entering into the documentation for the financing by the U.S. Bankruptcy Court for the District of Delaware. Upon approval, and together with the up to $1 billion of Hertz's debtor-in-possession financing that may be used for equity in the fleet financing subsidiary, Hertz will have access to up to $5 billion in total funding to support its fleet financing needs.

Hertz plans to refresh its rental car fleet in 2021 and anticipates the purchase of approximately 229,000 vehicles. To execute that plan, Hertz will create a newly formed special purpose entity that will be a direct wholly owned subsidiary of The Hertz Corporation. Athene USA Corp., an affiliate of Apollo Capital Management, L.P., committed to provide the new subsidiary the proposed $4 billion financing, and it is expected to be structured as an asset-backed securitization short-term facility. The company expects to begin placing orders for deliveries of new vehicles that would commence in the first quarter of 2021.

The new fleet financing is subject to the Bankruptcy Court's approval of the entry into certain documentation necessary for the financing and other customary conditions, with a hearing scheduled for Nov. 24.

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Last modified on Monday, 23 November 2020 14:25