Hertz Global Holdings (HTZ) – Get the report from Hertz Global Holdings, Inc. Shares surged after the car rental chain said it secured $ 1.65 billion in funding to help it emerge from bankruptcy proceedings.

The Estero, Florida company said in a statement that it had “guaranteed debtor-in-charge financing commitments totaling $ 1.65 billion and has filed a petition for approval of the financing by the United States court. bankruptcies for the District of Delaware “.

Hertz shares recently traded at $ 2.18, more than double their Thursday close at $ 1.03. The stock was down 93% since the start of the year until Thursday, with the coronavirus pandemic hitting the entire travel industry.

Hertz filed for Chapter 11 creditor protection in May.

“Funding is to be provided by some of the company’s senior pre-petition lenders and should be structured as a deferred drawing term loan facility,” Hertz said.

“Up to $ 1 billion can be used to provide equity capital for vehicle acquisitions in the United States and Canada. Up to $ 800 million can be used for working capital and general business purposes.

Managing Director Paul Stone said “The new funding will provide additional financial flexibility as we continue to manage the effects of the pandemic on the travel industry and take action to better position our business for the future.

“We are delighted with the keen interest from our pre-petition senior lenders and appreciate their support at Hertz and our future opportunities as a leader in car rental. “

Moelis is the company’s investment banker, FTI Consulting is Hertz’s financial advisor, and White & Case is legal advisor.