Hertz 2011 Annual Report Download - page 129

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(4) Maturity reference is to the ‘‘expected final maturity date’’ as opposed to the subsequent ‘‘legal maturity date.’’ The expected
final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to
be repaid. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable.
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:
2012 ........ $4,363.5 (including $3,691.0 of other short-term borrowings*)
2013 ........ $ 487.7
2014 ........ $1,148.0
2015 ........ $1,369.5
2016 ........ $ 254.1
After 2016 .... $3,777.5
* Our short-term borrowings as of December 31, 2011 include, among other items, the amounts outstanding under
the European Securitization, Australian Securitization, U.S. Fleet Financing Facility, U.S. Variable Funding Notes,
Brazilian Fleet Financing, Canadian Securitization, Capitalized Leases, European Revolving Credit Facility and the
Donlen GN II Variable Funding Notes. 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, 2012. As of December 31, 2011, short-term borrowings had a weighted average interest rate of 2.9%.
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 and cash received on the disposal of vehicles and equipment, together
with amounts available under various liquidity facilities will be adequate to permit us to meet our debt
maturities over the next twelve months.
Letters of Credit
As of December 31, 2011, there were outstanding standby letters of credit totaling $595.6 million. Of this
amount, $547.1 million was issued under the Senior Credit Facilities ($291.0 million of which was issued
for the benefit of the U.S. ABS Program and $44.4 million was related to other debt obligations) 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, 2011, none of these letters of
credit have been drawn upon.
CORPORATE DEBT
Senior Credit Facilities
Hertz had a credit agreement that provided a $1,400.0 million secured term loan facility, or as amended,
the ‘‘Former Term Facility.’’ In addition, the Former Term Facility included a separate incremental
pre-funded synthetic letter of credit facility in an aggregate principal amount of $250.0 million. Hertz,
HERC and certain other of our subsidiaries had a credit agreement that provided for aggregate
maximum borrowings of $1,800.0 million (subject to borrowing base availability) on a revolving basis
under an asset-based revolving credit facility, or as amended, the ‘‘Former ABL Facility.’’ Up to
$600.0 million of the Former ABL Facility was available for the issuance of letters of credit. We refer to the
Former Term Facility and the Former ABL Facility together as our ‘‘Former Credit Facilities.’’
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