Hertz 2007 Annual Report Download - page 25

• aggregate borrowings of approximately $1,707 million by us under a new senior term facility, or
the ‘‘Senior Term Facility,’’ which consists of (a) a maximum borrowing capacity of $2,000 million
(which was decreased in February 2007 to $1,400 million), which included a delayed draw facility
of $293 million (which was utilized during 2006) and (b) a synthetic letter of credit facility in an
aggregate principal amount of $250 million. On May 15, 2006, Hertz borrowed approximately
$84.9 million under the delayed draw term loan of the Senior Term Facility, or the ‘‘Delayed Draw
Term Loan,’’ and used the proceeds thereof to repay its 6.5% Senior Notes due 2006. Hertz
borrowed the remaining portion of the Delayed Draw Term Loan on July 10, 2006, and applied the
proceeds thereof to repay borrowings outstanding under the asset based revolving loan facility
described below;
• aggregate borrowings of approximately $400 million by Hertz and one of its Canadian
subsidiaries under a new senior asset-based revolving loan facility, or the ‘‘Senior ABL Facility,’’
with a maximum borrowing capacity of $1,600 million (which was increased in February 2007 to
$1,800 million). We refer to the Senior Term Facility and the Senior ABL Facility together as the
‘‘Senior Credit Facilities;’’
• aggregate proceeds of offerings totaling approximately $4,300 million by a special purpose entity
wholly-owned by us of asset-backed securities backed by our U.S. car rental fleet, or the ‘‘U.S.
Fleet Debt,’’ all of which were issued under our existing asset-backed notes program, or the ‘‘ABS
Program’’; under which an additional $600 million of previously issued pre-Acquisition asset-
backed securities having maturities from 2007 to 2009, or the ‘‘pre-Acquisition ABS Notes,’’
remain outstanding, and in connection with which approximately $1,500 million of variable
funding notes in two series were also issued, but not funded, on the Closing Date;
• aggregate borrowings of the foreign currency equivalent of approximately $1,781 million by
certain of our foreign subsidiaries under asset-based revolving loan facilities with aggregate
commitments equivalent to approximately $2,930 million (calculated in each case at
December 31, 2005), subject to borrowing bases comprised of rental vehicles, rental equipment,
and related assets of certain of our foreign subsidiaries, (substantially all of which are organized
outside of the United States) or one or more special purpose entities, as the case may be, and,
rental equipment and related assets of certain of our subsidiaries organized outside North
America or one or more special purpose entities, as the case may be, which facilities (together
with certain capital lease obligations) are referred to collectively as the ‘‘International Fleet Debt;’’
and
• our cash on hand in an aggregate amount of approximately $6.1 million.
In connection with the Acquisition and related transactions, we also refinanced our existing
indebtedness in an aggregate principal amount of $8,346 million, through the following transactions,
which was repaid as follows:
• the repurchase of approximately $3,700 million in aggregate principal amount of existing senior
notes having maturities from May 2006 to January 2028, of which additional notes in the
aggregate principal amount of approximately $803.3 million remained outstanding following the
Transactions;
• the repurchase of approximately e192.4 million (or approximately $230.0 million, calculated as of
December 31, 2005) in aggregate principal amount of existing Euro Medium Term Notes with a
maturity of July 2007, of which additional medium term notes in the aggregate principal amount of
approximately e7.6 million, or the ‘‘Euro Medium Term Notes,’’ remained outstanding following
the Transactions;
• the repayment of a $1,185 million intercompany note issued by Hertz to Ford Holdings on
June 10, 2005 that would have matured in June 2010;
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