Hertz 2010 Annual Report Download - page 124

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
restricted payments (including paying dividends, redeeming stock, making other distributions, loans or
advances) to Hertz Holdings and Hertz, whether directly or indirectly.
U.S. ABS Program
Hertz Vehicle Financing LLC, an insolvency remote, direct, wholly-owned, special purpose subsidiary of
Hertz, or ‘‘HVF,’’ is the issuer under the U.S. ABS Program. HVF has entered into a base indenture that
permits it to issue term and revolving rental car asset-backed securities, the collateral for which consists
primarily of a substantial portion of the rental car fleet used in Hertz’s domestic car rental operations and
contractual rights related to such vehicles.
References to the ‘‘U.S. ABS Program’’ include HVF’s U.S. Fleet Variable Funding Notes together with
HVF’s U.S. Fleet Medium Term Notes.
U.S. Fleet Variable Funding Notes
References to the ‘‘U.S. Fleet Variable Funding Notes’’ include HVF’s Series 2009-1 Variable Funding
Rental Car Asset Backed Notes (as amended, the ‘‘Series 2009-1 Notes’’) and Series 2010-2 Variable
Funding Rental Car Asset Backed Notes (the ‘‘Series 2010-2 Notes’’), collectively. The U.S. Fleet Variable
Funding Notes provide for aggregate maximum borrowings of $2,138.0 million (subject to borrowing
base availability) on a revolving basis under two separate asset-backed variable funding note facilities.
Although the terms of the Series 2010-2 Notes are similar to the terms of the Series 2009-1 Notes, the
Series 2010-2 Notes are secured by a pool of collateral segregated from the collateral securing HVF’s
other outstanding notes, including the Series 2009-1 Notes.
In December 2010, HVF purchased interest rate caps relating to both the Series 2009-1 Notes and the
Series 2010-2 Notes. Concurrently, Hertz sold offsetting interest rate caps relating to both the
Series 2009-1 Notes and the Series 2010-2 Notes, thereby neutralizing the hedge on a consolidated
basis and reducing the net cost of the hedge. See Note 13—Financial Instruments.
U.S. Fleet Medium Term Notes
References to the ‘‘U.S. Fleet Medium Term Notes’’ include HVF’s Series 2009-2 Notes and
Series 2010-1 Notes, collectively.
Series 2009-2 Notes. In October 2009, HVF issued the Series 2009-2 Rental Car Asset Back Notes,
Class A (the ‘‘Series 2009-2 Class A Notes’’) in an aggregate original principal amount of $1.2 billion. In
June 2010, HVF issued the Subordinated Series 2009-2 Rental Car Asset Backed Notes, Class B (the
‘‘Series 2009-2 Class B Notes’’ and together with the Series 2009-2 Class A Notes, the ‘‘Series 2009-2
Notes’’) in an aggregate original principal amount of $184.3 million.
Series 2010-1 Notes. In July 2010, HVF issued the Series 2010-1 Rental Car Asset Backed Notes (the
‘‘Series 2010-1 Notes’’) in an aggregate original principal amount of $750 million.
Fleet Debt—Other
U.S. Fleet Financing Facility
In September 2006, Hertz and Puerto Ricancars, Inc., a Puerto Rican corporation and wholly-owned
indirect subsidiary of Hertz, or ‘‘PR Cars,’’ entered into a credit agreement that provides for aggregate
maximum borrowings of $165.0 million (subject to borrowing base availability) on a revolving basis
under an asset-based revolving credit facility (as amended, the ‘‘U.S. Fleet Financing Facility’’). The U.S.
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