Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Hertz’s stock more than doubled after securing $ 1.7 billion in DIP financing

Hertz’s stock more than doubled after securing $ 1.7 billion in DIP financing



Shares of Hertz Global Holdings Inc. HTZ,
-1.90%
more than doubled the heavy volume of premarket trading on Friday, after a bankrupt car rental company claimed $ 1.65 billion in debt financing (DIP). The company said up to $ 1 billion of the DIP could be used to provide equity for vehicle purchases in the US and Canada, and up to $ 800 million could be used for working capital and general corporate purposes. Financing is subject to court approval of losses. The stock rocked 1

05% to put it on track to open the highest price seen during regular session hours since June. Trading volume swelled to 58.2 million shares, making it the most active stock in the premarket, and well above the all-day average of nearly 8.1 million shares. “This new financing will provide additional financial flexibility as we continue to navigate the effects of the pandemic on the travel industry and take steps to properly position our business for the future,” the Chief Executive said. Paul Stone. The stock is down 93.5% year-over-year until today, while shares rival Avis Budget Group Inc. shares. CAR,
+ 2.51%
slipped 5.1% and the S&P 500 SPX,
-0.15%
gained 7.8%.


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