Athene, an affiliate of Apollo Capital Management, committed to provide Hertz Global Holdings a $4 billion asset-backed securitization short-term facility.

Hertz also filed a motion for approval of The Hertz Corporation entering into the documentation for the financing by the U.S. Bankruptcy Court for the District of Delaware. Upon approval and combined 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.

Moelis & Co. is serving as Hertz’s investment banker, FTI Consulting is serving as Hertz’s financial advisor and White & Case is serving as Hertz’s legal advisor.

Hertz plans to refresh its rental car fleet in 2021 and anticipates the purchase of approximately 229,000 vehicles. To execute that plan, Hertz will create a newly formed special purpose entity that will be a direct wholly-owned subsidiary of The Hertz Corporation. The company expects to begin placing orders for deliveries of new vehicles that would commence in Q1/21.

“This new $4 billion financing provides us with an efficient and cost-effective way to maintain a robust and competitive fleet with new cars that appeal to our customers and enables Hertz to continue delivering an industry-leading experience, which has earned Hertz two consecutive No. 1 rankings by J.D. Power for rental car customer satisfaction. We appreciate Apollo’s support as we continue taking steps to best position our business as a rental car leader through the pandemic and for the future,” Paul Stone, president and CEO of Hertz, said.

The new fleet financing is subject to the bankruptcy court’s approval of the entry into certain documentation necessary for the financing and other customary conditions, with a hearing scheduled for Nov. 24, 2020.