Hertz 2010 Annual Report Download - page 122

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
month period of $250 million or more, (c) (i) Hertz is in pro forma compliance with the specified leverage
ratio and the specified fixed charge coverage ratio set forth in the Senior ABL Facility or (ii) the amount of
the proposed dividend does not exceed the sum of (x) 1.0% of tangible assets plus (y) a specified
available amount determined by reference to, among other things, 50% of net income from October 1,
2005 to the end of the most recent fiscal quarter for which financial statements of Hertz are available
(which amount is net of amounts paid under the foregoing clause (x)) plus (z) a specified amount of
certain equity contributions made to Hertz and (d) no default exists or would result from such dividends.
We are in the process of refinancing the Senior Credit Facilities. We expect to complete this process in
the first half of 2011.
Senior Notes and Senior Subordinated Notes
References to our ‘‘Senior Notes’’ include the series of Hertz’s unsecured senior notes set forth in the
table below. As of December 31, 2010, the outstanding principal amount for each such series of the
Senior Notes is also specified below.
Senior Notes Outstanding Principal
8.875% Senior Notes due January 2014 ...... $1,747.3 million
7.875% Senior Notes due January 2014 ...... $282.3 million (e213.5 million)
7.50% Senior Notes due October 2018 (issued
September 2010) ....................... $700 million
7.375% Senior Notes due January 2021 (issued
December 2010) ....................... $500 million
References to the ‘‘Senior Subordinated Notes’’ are to Hertz’s 10.5% Senior Subordinated Notes due
January 2016.
In January 2011, we redeemed the Senior Subordinated Notes in full and, in January and February 2011,
we redeemed $1,105 million principal amount of the outstanding 8.875% Senior Notes. See Note 17—
Subsequent Events.
Hertz’s obligations under the indentures for the Senior Notes are guaranteed by each of its direct and
indirect domestic subsidiaries that is a guarantor under the Senior Term Facility. The guarantees of all of
the subsidiary guarantors may be released to the extent such subsidiaries no longer guarantee our
Senior Credit Facilities in the United States. HERC may also be released from its guarantee under certain
of the Senior Notes at any time at which no event of default under the indenture has occurred and is
continuing, notwithstanding that HERC may remain a subsidiary of Hertz.
The indentures for the Senior Notes contain covenants that, among other things, limit or restrict the
ability of the Hertz credit group to incur additional indebtedness, incur guarantee obligations, prepay
certain indebtedness, make certain restricted payments (including paying dividends, redeeming stock
or making other distributions to parent entities of Hertz and other persons outside of the Hertz credit
group), make investments, create liens, transfer or sell assets, merge or consolidate, and enter into
certain transactions with Hertz’s affiliates that are not members of the Hertz credit group.
The covenants in the indentures for the Senior Notes also restrict Hertz and other members of the Hertz
credit group from redeeming stock or making loans, advances, dividends, distributions or other
restricted payments to any entity that is not a member of the Hertz credit group, including Hertz
Holdings, subject to certain exceptions.
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