Hertz filed a motion early this morning seeking approval of USD 1.65bn in debtor-in-possession (DIP) financing to support its operations through 2021.
The partially redacted DIP motion states that the financing is fully backstopped by Apollo Capital Management and affiliates, Bracebridge Capital, Diameter Capital Partners, First Eagle, King Street Capital Management, Silver Point, Taconic Capital Advisors with Barclays as agent. Hertz would be permitted to use USD 1bn of the term loan financing toward new interim fleet financing, allowing it to replenish its fleet of cars, and up to USD 800m for working capital and general corporate purposes. The financing would mature 31 December 2021 and be priced at L+ 725bps, with the interest rate reduced to L+ 675bps upon “significant repayment” of a redacted amount of first lien debt.
Judge Mary Walrath of the US Bankruptcy Court for the District of Delaware has scheduled a hearing to consider the DIP for 29 October.
The car rental giant, with investment banker Moelis, reported that it reached out to 52 potential investors, entering into 23 non-disclosure agreements and receiving eight indications of interest and financing proposals.