Hertz 2010 Annual Report Download - page 120

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Maturities
The aggregate amounts of maturities of debt for each of the twelve-month periods ending December 31
(in millions of dollars) are as follows:
2011 ........ $5,067.5 (including $3,277.1 of other short-term borrowings)
2012 ........ $1,813.0
2013 ........ $ 462.1
2014 ........ $1,436.1
2015 ........ $1,182.8
After 2015 .... $1,468.1
We are highly leveraged and a substantial portion of our liquidity needs arise from debt service on our
indebtedness and from the funding of our costs of operations and capital expenditures. We believe that
cash generated from operations, together with amounts available under various liquidity facilities will be
adequate to permit us to meet our debt maturities over the next twelve months.
Our short-term borrowings as of December 31, 2010 include, among other items, the amounts
outstanding under the European Securitization, Australian Securitization, U.S. Fleet Financing Facility,
Brazilian Fleet Financing Facility, Canadian Securitization, Capitalized Leases and European Revolving
Credit Facility. These amounts are reflected as short-term borrowings, regardless of the facility maturity
date, as these facilities are revolving in nature and/or the outstanding borrowings have maturities of
three months or less. Short-term borrowings also include the Convertible Senior Notes which became
convertible on January 1, 2011. As of December 31, 2010, short-term borrowings had a weighted
average interest rate of 3.10%.
In January 2011, Hertz redeemed in full its outstanding ($518.5 million principal amount) 10.5% Senior
Subordinated Notes due 2016. In January and February 2011, Hertz redeemed $1,105 million principal
amount of its outstanding 8.875% Senior Notes due 2014. The redeemed 10.5% Senior Subordinated
Notes and portion of the 8.875% Senior Notes have been included in the 2011 maturities in the table
above. See Note 17—Subsequent Events.
Letters of Credit
As of December 31, 2010, there were outstanding standby letters of credit totaling $560.5 million. Of this
amount, $513.4 million was issued under the Senior Credit Facilities ($277.6 million of which was issued
for the benefit of the ABS Program) and the remainder is primarily to support self-insurance programs
(including insurance policies with respect to which we have agreed to indemnify the policy issuers for
any losses) as well as airport concession obligations in the United States, Canada and Europe. As of
December 31, 2010, none of these letters of credit have been drawn upon.
CORPORATE DEBT
Senior Credit Facilities
Senior Term Facility: In December 2005, Hertz entered into a credit agreement that provides a
$1,400.0 million secured term loan facility (as amended, the ‘‘Senior Term Facility’’), $1,345.0 million of
which was outstanding as of December 31, 2010. In addition, the Senior Term Facility includes a
pre-funded synthetic letter of credit facility in an aggregate principal amount of $250.0 million.
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