HERTZ GETS US $1.65B BANKRUPTCY LOAN FROM APOLLO, OTHERS

Hertz Global Holdings Inc. has arranged a new US$1.65-billion debt package to help it reorganize while in bankruptcy, sending shares jumping more than 150 per cent on Friday before closing up 142 per cent. Should the financing win court approval, a group of the company's first-lien lenders will provide the money at an initial interest rate of 7.25 percentage points above the London interbank offered rate, the car rental giant said Friday. Lenders who signed a letter committing to fund the loan include Apollo Global Management, Diameter Capital Partners and Silver Point Capital, according to court documents. As much as US$1 billion of the debt can be used for vehicle acquisition in the U.S. and Canada, while up to US$800 million can be used for working capital and general corporate purposes, Hertz said in a statement.