Shares of Hertz Global Holdings Inc. (HTZ) more than doubled on heavy volume in premarket trading Friday, after the bankrupt rental car company said it secured $1.65 billion in debtor-in-possession (DIP) financing. The company said up to $1 billion of the DIP can be used to provide equity for vehicle purchases in the U.S. and Canada, and up to $800 million can be used for working capital and general corporate purposes. The financing is subject to bankruptcy court approval. The stock rocketed 105% to put it on track to open at the highest price seen during regular-session hours since June. Trading volume swelled to 58.2 million shares, making it the most active stock in the premarket, and already well above the full-day average of about 8.1 million shares. "This new financing will provide additional financial flexibility as we continue to navigate the pandemic's effects on the travel industry and take steps to best position our business for the future," said Chief Executive Paul Stone. The stock has plummeted 93.5% year to date through Thursday, while shares of rival Avis Budget Group Inc. (CAR) have slipped 5.1% and the S&P 500 has gained 7.8%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 16, 2020 08:55 ET (12:55 GMT)
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