Hertz 2008 Annual Report Download - page 128

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Credit Facilities
As of December 31, 2008, the following credit facilities were available for the use of Hertz and its
subsidiaries:
Availability
Under
Borrowing
Remaining Base
Capacity Limitation
Corporate Debt
Senior Term Facility .......................................... $ — $ —
Senior ABL Facility .......................................... 1,669.8 1,321.4
Total Corporate Debt ....................................... 1,669.8 1,321.4
Fleet Debt
U.S. Fleet Debt and Series 2008-1 Notes .......................... 1,609.8 79.9
International Fleet Debt ....................................... 531.4 113.3
International ABS Fleet Financing Facility .......................... 326.8 11.5
Fleet Financing Facility ....................................... 125.7 —
Brazilian Fleet Financing Facility ................................. 2.4 —
Canadian Fleet Financing Facility ................................ 211.6 —
Belgian Fleet Financing Facility ................................. — —
U.K. Leveraged Financing ..................................... 88.1 —
Total Fleet Debt ........................................... 2,895.8 204.7
Total ..................................................... $4,565.6 $1,526.1
As of December 31, 2008, the Senior Term Facility had approximately $23.8 million available under the
letter of credit facility and the Senior ABL Facility had $84.8 million available under the letter of credit
facility sublimit.
Our liquidity as of December 31, 2008 was $4.8 billion, which consisted of $0.6 billion of cash, $1.3 billion
of unused commitments under our Senior ABL Facility and $2.9 billion of unused commitments under
our Fleet Financing Facilities. Taking into consideration the borrowing base limitations in our Senior ABL
Facility and in our Fleet Debt, the amount that we had available for immediate use as of December 31,
2008 under our Senior ABL Facility was $1.3 billion and we had $0.2 billion of over-enhancement that
was available under our Fleet Debt. Accordingly, as of December 31, 2008 we had $2.1 billion
($0.6 billion in cash, $1.3 billion available under our Senior ABL Facility and $0.2 billion available under
our various Fleet Debt facilities) in liquidity that was available for our immediate use. Future availability of
borrowings under these facilities will depend on borrowing base requirements and other factors, many
of which are outside our control. See ‘‘Item 1A—Risk Factors—Risks Related to our Substantial
Indebtedness—Our reliance on asset-backed financing to purchase cars subjects us to a number of
risks, many of which are beyond our control.’’
As of December 31, 2008, substantially all of our assets were pledged under one or more of the facilities
noted above. As of December 31, 2008 and 2007, accrued interest was $131.4 million and
$138.3 million, respectively, which is reflected in our consolidated balance sheet in ‘‘Other accrued
liabilities.’’
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