Hertz lands funds for reorganization

Hertz Global Holdings has arranged a new $1.65 billion financing package to help it reorganize while in bankruptcy. Shares more than doubled after the plan was announced.

If the bankruptcy loan wins 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. The group will also collect an undisclosed amount of fees. 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.

Hertz’s stock soared asmuch as 178 percent Fridaymorning in New York to trade at $2.86.

Asmuch as $1 billion of the debt can be used for vehicle acquisition in the U.S. and Canada, while up to $800million can be used for working capital and general corporate purposes, Hertz said in a statement.