Hertz 2007 Annual Report Download - page 142

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The aggregate amounts of maturities of debt (in millions of dollars) are as follows: 2008, $3,604.2
(including $2,767.7 of other short-term borrowings); 2009, $1,017.8; 2010, $2,927.8; 2011, $121.0; 2012,
$176.2; after 2012, $4,166.6.
Our short-term borrowings as of December 31, 2007 include, among other items, the amounts
outstanding under our Senior ABL Facility, International Fleet Debt facility, fleet financing facilities
relating to our car rental fleet in Hawaii, Kansas, Puerto Rico and St. Thomas, the U.S. Virgin Islands,
Brazil, Canada, Belgium and our U.K. leveraged financing. These amounts are considered short term in
nature since they have maturity dates of three months or less; however these facilities are revolving in
nature and do not permanently expire at the time of the short term debt maturity. In addition, we include
certain scheduled payments of principal under our ABS Program.
During the year ended December 31, 2007, short-term borrowings (in millions of dollars) were as follows:
maximum month-end amounts outstanding of $3,801.8 of bank borrowings; and a monthly average
amount outstanding of $2,920.8 of bank borrowings (weighted-average interest rate 6.0%).
During the year ended December 31, 2006, short-term borrowings (in millions of dollars) were as follows:
maximum month-end amounts outstanding of $11.1 of commercial paper and $3,077.5 of bank
borrowings; and monthly average amounts outstanding of $12.4 of commercial paper (weighted-
average interest rate 0.6%) and $2,509.9 of bank borrowings (weighted-average interest rate 5.2%).
As of December 31, 2007, there were standby letters of credit issued totaling $473.2 million. Of this
amount, $234.0 million has been issued for the benefit of the ABS Program ($200.0 million of which was
issued by Ford and $34.0 million of which relates to the Senior Credit Facilities below) and the remainder
is primarily to support self-insurance programs (including insurance policies with respect to which we
have indemnified the issuers for any losses) in the United States, Canada and Europe and to support
airport concession obligations in the United States and Canada. As of December 31, 2007, the full
amount of these letters of credit was undrawn.
Senior Credit Facilities
In connection with the Acquisition, Hertz entered into a credit agreement, dated December 21, 2005,
with respect to its Senior Term Facility with Deutsche Bank AG, New York Branch as administrative agent
and collateral agent, Lehman Commercial Paper Inc. as syndication agent, Merrill Lynch & Co., Merrill
Lynch, Pierce, Fenner & Smith Incorporated as documentation agent, and the other financial institutions
party thereto from time to time. The facility consisted of a $2,000.0 million secured term loan facility
(which was decreased in February 2007 to $1,400.0 million) providing for loans denominated in U.S.
dollars, which included a delayed draw facility of $293.0 million (which was utilized in 2006). In addition,
there is a pre-funded synthetic letter of credit facility in an aggregate principal amount of $250.0 million.
On the Closing Date, Hertz utilized $1,707.0 million of the Senior Term Facility and $182.2 million in
letters of credit. As of December 31, 2007, we had $1,362.7 million in borrowings outstanding under this
facility, which is net of a discount of $23.4 million and had issued $242.7 million in letters of credit. The
term loan facility and the synthetic letter of credit facility will mature in December 2012. The term loan
amortizes in nominal quarterly installments (not exceeding one percent of the aggregate principal
amount thereof per annum) until the maturity date. At the borrower’s election, the interest rates per
annum applicable to the loans under the Senior Term Facility are based on a fluctuating rate of interest
measured by reference to either (1) an adjusted London inter-bank offered rate, or ‘‘LIBOR,’’ plus a
borrowing margin or (2) an alternate base rate plus a borrowing margin. In addition, the borrower pays
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