Hertz 2009 Annual Report Download - page 103

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
coverage ratio of not less than 2.25:1. In addition, under our Senior ABL Facility, if there was less than
$200.0 million of available borrowing capacity under that facility as of December 31, 2009, Hertz was
required to have a consolidated leverage ratio of not more than 5.00:1 and a consolidated fixed charge
coverage ratio of not less than 1:1 for the quarter then ended. Under the Senior Term Facility, as of
December 31, 2009, we had a consolidated leverage ratio of 3.85:1 and a consolidated interest expense
coverage ratio of 3.16:1. Since we had maintained sufficient borrowing capacity under our Senior ABL
Facility as of December 31, 2009, and expect to maintain such capacity in the future, the consolidated
fixed charge coverage ratio was not deemed relevant for presentation. For further information on the
terms of our senior credit facilities, see Note 3 to the Notes to our consolidated financial statements
included in this Annual Report under caption ‘‘Item 8—Financial Statements and Supplemental Data.’’ In
addition to the borrowings under our senior credit facilities, we have a significant amount of additional
debt outstanding. For a discussion of the risks associated with our significant leverage, see ‘‘Item 1A—
Risk Factors—Risks Relating to Our Substantial Indebtedness.’’
Credit Facilities
As of December 31, 2009, 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 .......................................... 1,654.4 925.0
Total Corporate Debt ....................................... 1,654.4 925.0
Fleet Debt
U.S. Fleet Debt ............................................. 2,138.1 88.7
International Fleet Debt ....................................... 851.8 110.0
International ABS Fleet Financing Facility .......................... 658.7 110.4
Fleet Financing Facility ....................................... 17.0 17.0
Brazilian Fleet Financing Facility ................................. 6.5 —
Canadian Fleet Financing Facility ................................ 158.8 45.1
Belgian Fleet Financing Facility ................................. ——
Capitalized Leases .......................................... 101.5 —
Total Fleet Debt ........................................... 3,932.4 371.2
Total ..................................................... $5,586.8 $1,296.2
As of December 31, 2009, the Senior Term Facility had approximately $0.6 million available under the
letter of credit facility and the Senior ABL Facility had $114.6 million available under the letter of credit
facility sublimit.
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