Hertz Global Holdings has secured commitments for fleet financing totaling $4 billion. The company has 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 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.

Hertz plans to refresh its rental car fleet in 2021 and anticipates the purchase of approximately 229,000 vehicles. As a comparison, Hertz averaged 538,000 vehicles in the U.S. in 2019.

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. Athene USA Corporation, an affiliate of Apollo Capital Management, L.P., committed to provide the new subsidiary the proposed $4 billion financing, and it is expected to be structured as an asset-backed securitization short-term facility.

Hertz expects to begin placing orders for deliveries of new vehicles that would commence in the first quarter of 2021.