Hertz 2008 Annual Report Download - page 25

ITEM 1. BUSINESS (Continued)
• net proceeds from a private placement by CCMG Acquisition Corporation, a wholly-owned
subsidiary of Hertz Holdings, of $1,800 million aggregate principal amount of 8.875% Senior
Notes due 2014, or the ‘‘Senior Dollar Notes’’ and $600 million aggregate principal amount of
10.5% Senior Subordinated Notes due 2016, or the ‘‘Senior Subordinated Notes’’ and
e225 million aggregate principal amount of 7.875% Senior Notes due 2014, or the ‘‘Senior Euro
Notes.’’ In connection with the Transactions, CCMG Acquisition Corporation merged with and
into Hertz, with Hertz as the surviving corporation of the merger. CCMG Acquisition Corporation
had no operations prior to the Acquisition. We refer to the Senior Dollar Notes and the Senior Euro
Notes together as the ‘‘Senior Notes.’’
• 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,
or the ‘‘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 Delayed Draw Facility and used the proceeds
thereof to repay its 6.5% Senior Notes due 2006. Hertz borrowed the remaining portion of the
Delayed Draw Facility on July 10, 2006, and applied the proceeds thereof to repay borrowings
outstanding under the senior 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,’’
remained 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 international 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 international 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
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