Hertz Global Holdings Inc. (NYSE: HTZ) stock more than doubled on Friday after it was announced that the company had arranged a new $1.65 billion debt package. This company has been facing bankruptcy for months, and this package would be a much-needed lifeline.

One sticking point is that the debt package must win court approval, which it seems investors (really traders) are now betting on heavily.

In terms of the specifics, a group of Hertz’s first-lien lenders will provide the money at an initial interest rate of 7.25 percentage points above the London interbank offered rate. The group also will collect an undisclosed amount in fees. According to court documents, these lenders include Apollo Global Management, Diameter Capital Partners and Silver Point Capital.

The loan would mature at the end of 2021, and it has a limited number of covenants that would cause a default. Also according to the deal, Hertz must file a Chapter 11 reorganization plan by August 1, 2021.

So what does Hertz plan to do with the cash? The company said that as much as $1 billion will be put toward vehicle acquisition in the United States and Canada, while up to $800 million would be used for working capital and general corporate purposes.

Note that Hertz had a market cap of roughly $161 million prior to Friday’s move, so $1.65 billion would definitely help the company, considering its stock has fallen 93.5% year to date.

Management was quick to say that this new financing will provide additional financial flexibility to Hertz as it continues to navigate the pandemic’s effects on the travel industry.

Hertz stock traded up 155% to $2.63 on Friday, in a 52-week range of $0.40 to $20.85. The consensus price target is $20.00.

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