Hertz 2007 Annual Report Download - page 152

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
U.K. Leveraged Financing. On December 21, 2007, our subsidiary in the United Kingdom, or the
‘‘U.K.,’’ Hertz (U.K.) Limited, entered into an agreement for a sale and lease back facility with a financial
institution in the U.K., under which we may sell and leaseback fleet up to the value of £135.0 million (or
$271.2 million). The amount available under this facility increases over the term of the facility. The facility
is scheduled to mature in December 2013. This facility refinanced the U.K. portion of the International
Fleet Debt facilities. This facility is guaranteed by HIL and pricing is based on current LIBOR. This facility
contains covenants typical for this type of facility including restrictions on engaging in mergers and
change of business, and includes requirements to meet on a quarterly basis certain ratios measuring
utilization, interest coverage and net worth. As of December 31, 2007, the foreign currency equivalent of
$222.7 million in borrowings were outstanding under this facility.
Pre-Acquisition Debt
As of December 31, 2007, we had approximately $509.4 million (net of a $5.1 million discount)
outstanding in pre-Acquisition promissory notes issued under three separate indentures at an average
interest rate of 7.1%. These pre-Acquisition promissory notes have maturities ranging from 2008 to 2028.
As of December 31, 2006, we had approximately e7.6 million (or $10.0 million) outstanding in
pre-Acquisition Euro Medium Term Notes, in connection with which we entered into an interest rate swap
agreement on December 21, 2005, effective January 16, 2006 and maturing on July 16, 2007. The
purpose of this interest rate swap was to lock in the interest cash outflows at a fixed rate of 4.1% on the
variable rate Euro Medium Term Notes. On June 30, 2007, the remaining notes outstanding and related
interest rate swap agreements pursuant to the Euro Medium Term Note Program were repaid in full and
expired, respectively.
We also had outstanding as of December 31, 2007 approximately $303.6 million in borrowings, net of a
$3.9 million discount, consisting of pre-Acquisition ABS Notes with an average interest rate of 3.1%.
These pre-Acquisition ABS Notes have maturities ranging from 2008 to 2009. See ‘‘U.S. Fleet Debt’’ for a
discussion of the collateralization of the pre-Acquisition ABS Notes.
Credit Facilities
As of December 31, 2007, the following credit facilities were available for the use of Hertz and its
subsidiaries:
• The Senior Term Facility had approximately $7.3 million available under the letter of credit facility.
• The Senior ABL Facility had the foreign currency equivalent of approximately $1,570.6 million of
remaining capacity, all of which was available under the borrowing base limitation and
$178.6 million of which was available under the letter of credit facility sublimit.
• The U.S. Fleet Debt had approximately $1,500.0 million of remaining capacity and $17.8 million
available under the borrowing base limitation. No additional amounts were available under the
letter of credit facility.
• The International Fleet Debt facilities had the foreign currency equivalent of approximately
$885.6 million of remaining capacity and $223.3 million available under the borrowing base
limitation.
• The Fleet Financing Facility had approximately $103.0 million of remaining capacity and
$4.8 million available under the borrowing base limitation.
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