Hertz gets $4 billion fleet financing commitment via Apollo affiliate

By Sarah Lizee

Olympia, Wash., Nov. 5 – Hertz Corp. announced that it has secured commitments for fleet financing totaling $4 billion and has filed a motion for approval in the U.S. Bankruptcy Court for the District of Delaware.

Upon approval, and together with the up to $1 billion of Hertz’s debtor-in-possession financing that may be used for equity in the fleet financing subsidiary, Hertz will have access to up to $5 billion in total funding to support its fleet financing needs, according to a Thursday press release.

Hertz plans to refresh its rental car fleet in 2021 and anticipates the purchase of roughly 229,000 vehicles.

Athene USA Corp., an affiliate of Apollo Capital Management, LP, committed to provide the new special-purpose entity owned by Hertz the proposed fleet financing, and it is expected to be structured as an asset-backed securitization short-term facility.

A hearing on approval of the fleet financing is scheduled for Nov. 24.

Hertz is an Estero, Fla.-based car rental company. It filed Chapter 11 bankruptcy on May 22, 2020. The case number is 20-11218.

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