Sunday, December 6, 2020

Hertz Global Escalates Followed By a $1.65 Billion Bankruptcy Loan

Must read

U.S. Indices Started December With A Record Breaking Day

Wall Street began December on the right foot after gains of 11 percent to 12 percent for its key indices in November, with the...

Oil Futures Saw Below 1% Decline, OPEC Still To Decide Upon Production Cuts

On Monday, November 30, after a rise of 1.1 percent during Friday trading, price of oil futures declined -0.4 percent to $45.34 per barrel...

Death Toll In U.S. Could Reached 321,000 In A Month, Air Traveling Rose 22% This Week

In recent weeks, the outbreak of coronavirus has led to new travel restriction initiatives in a number of U.S. states and cities, including California,...

UK Promised Vaccination In Next Week, U.S. To Approve New Support Package

The arrangements for coronavirus vaccine programs are well underway on the health front. On Tuesday, the UK distinguished itself by being the first country...

Hertz leads the market with the highest trading volume of more than 395 million.

Shares of Hertz Global Holdings Inc. (HTZ) rallied in the premarket today after the company reported that it has arranged a new $1.65 billion financing package to support and help the firm reorganize while in bankruptcy.


My #1 Stock Trade This Year (HINT: It's a COVID-19 Play)

Get Ready for my next COVID-19 stock idea. I have been very fortunate in discovering biotech, therapeutic and diagnostic companies within the COVID-19 space, before wall street catches on. Our goal for our members is to get our Alert’s first before the crowd.    

>> Sign Up Now to Get Name & Ticker Symbol of Next Triple-Digit Gainer <<

Sponsored


HTZ shares doubled followed by the update and the stock kicked off at $2.40. The shares of Hertz crossed the highest share price since mid-June. As we write this at 11:22 A.M. EDT, HTZ was trading at $1.96 up by 90%. The trading volume of the stock remains to be the highest today surpassing NIO and GE stocks, trading with a volume of almost 395 million.

Hertz’s stock surged to a maximum of 178% in the premarket on Friday trading at $2.86.

The company has arranged $1.65 billion financing package that will help the company to reestablish. Hertz intends to invest around $1 billion in vehicle acquisitions in the U.S. and Canada while using $800 million for general corporate purposes and working capital.

The President of the company, Paul Stone highlighted that this financing will provide additional financial flexibility to the company’s operations while they fight against the global pandemic. He said:

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.

If the bankruptcy loan wins the court approval, a group of Hertz’s first-lien lenders will provide the money at an initial interest rate of approximately 7.25%, which will be above the rate that London interbank offered.

Reportedly, the court documents say that the group will also obtain an undisclosed amount of fees. Those who signed a letter agreeing to fund the loan include Apollo Global Management, Silver Point Capital, and Diameter Capital Partners

The following loan proposal is a major sign that senior lenders have shown confidence in Hertz Global and they see the company bouncing back once again and later on pay them back. The maturity period of the loan is by the end of 2021. Under the loan deal with lenders, Hertz must file a Chapter 11 reorganization plan by August 1, 2021.

The new financing needs approval from Hertz’s bankruptcy judge, and a hearing is scheduled for October 29. Hertz Global Holdings Inc. (HTZ) filed for bankruptcy in May when the global pandemic impacted the most and the shut-down of the global travel industry caused serious problems.

Get The Best Stocks To Trade Every Day!

Join now to get the DBTnews.com pre-market morning brief 100% free

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Luminar Technologies (LAZR) Stock Debut With 27% Rise, Zscaler (ZS) Stock Also Rose 26%

Shares of Luminar Technologies Inc (LAZR) increased by more than 27% to $22.98 after it started trading as a public company on Thursday. The...

UK Promised Vaccination In Next Week, U.S. To Approve New Support Package

The arrangements for coronavirus vaccine programs are well underway on the health front. On Tuesday, the UK distinguished itself by being the first country...

U.S. Indices Started December With A Record Breaking Day

Wall Street began December on the right foot after gains of 11 percent to 12 percent for its key indices in November, with the...

Oil Futures Saw Below 1% Decline, OPEC Still To Decide Upon Production Cuts

On Monday, November 30, after a rise of 1.1 percent during Friday trading, price of oil futures declined -0.4 percent to $45.34 per barrel...

Death Toll In U.S. Could Reached 321,000 In A Month, Air Traveling Rose 22% This Week

In recent weeks, the outbreak of coronavirus has led to new travel restriction initiatives in a number of U.S. states and cities, including California,...

Get The Best Stocks To Trade Every Day!

Join now to get the DBTnews.com pre-market morning brief 100% free

Get The Best Stocks To Trade Every Day!

Join now to get the DBTNews.com pre-market morning brief 100% free

We do not sell or share your information with anyone.