Hertz Global Holdings secured commitments for debtor-in-possession financing totaling $1.65 billion. Moelis & Co. is serving as investment banker, while FTI Consulting is serving as Hertz’s financial advisor and White & Case is serving as legal advisor.

The proposed DIP financing will support the company as it moves through the next stage of its Chapter 11 proceedings. The financing is to be provided by certain of the company’s pre-petition first-lien lenders and is expected to be structured as a delayed draw term loan debtor facility. Up to $1 billion can be used to provide equity for vehicle acquisition in the U.S. and Canada, while up to $800 million can be used for working capital and general corporate purposes.

The financing is subject to finalization of definitive documentation, court approval and other customary conditions. A hearing is scheduled for Oct. 29, 2020.

“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. We are pleased with the strong interest from our pre-petition first-lien lenders and appreciate their support of Hertz and our future opportunities as a rental car leader,” Paul Stone, president and CEO of Hertz, said.

The Hertz Corporation, a subsidiary of Hertz Global Holdings, operates the Hertz, Dollar and Thrifty vehicle rental brands as worldwide vehicle rental companies.