It announced in March that it might sell a controlling stake in the company to two investment firms for $4.2 billion. Knighthead Capital Management and Certares Opportunities would have the chance to buy the entire reorganized car rental company, but no less than a majority of its shares. The proposed investment, combined with a new $1 billion first-lien financing, a new $1.5 billion revolving credit facility, and a new asset-backed securitization facility to finance its U.S. vehicle fleet, was eyed as a way to provide the funding needed for the company to complete its restructuring.
Hertz's emergence from bankruptcy protection comes at a time when Americans are getting vaccinated for COVID-19 and eager to start traveling again. Demand for car rentals is surging, and with limited supply, prices are skyrocketing.