Stocks of Hertz Global Holdings closed more than double on Friday’s premarket trading after the company secured $ 1.65 billion debtor-in-possession (DIP) financing, according to MarketWatch. Up to $1 billion of the DIP to provide equity for vehicle purchases in the U.S. and Canada and another $800 million for working capital and general corporate uses.
- New DIP financing to provide Hertz with additional financing flexibility to navigate pandemic impacts on the travel industry and position the business for the future
- Hertz’s DIP financing is subject to bankruptcy court approval.
- Hertz stock rose 105%, the highest since June, while trading swelled to 58.2 million shares above the full-day average of 8.1 million shares following DIP financing.
Hertz stock is currently gaining. HTZ: NYSE is up 70.87%.