Hertz 2011 Annual Report Download - page 132

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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, 2011, the outstanding principal amount for each such series of the
Senior Notes is also specified below.
Senior Notes Outstanding Principal (in millions)
8.875% Senior Notes due January 2014 . . . $ 162.3
7.875% Senior Notes due January 2014 . . . 276.3 (e213.5)
7.50% Senior Notes due October 2018 .... 700.0
7.375% Senior Notes due January 2021 . . . 500.0
6.75% Senior Notes due April 2019 ....... 1,000.0
$2,638.6
References to the ‘‘Senior Subordinated Notes’’ are to Hertz’s 10.50% Senior Subordinated Notes due
January 2016.
In January 2011, Hertz redeemed in full its outstanding ($518.5 million principal amount) 10.50% Senior
Subordinated Notes due 2016 which resulted in premiums paid of $27.2 million and the write-off of
unamortized debt costs of $8.6 million. In January and February 2011, Hertz redeemed $1,105 million
principal amount of its outstanding 8.875% Senior Notes due 2014 which resulted in premiums paid of
$24.5 million and the write-off of unamortized debt costs of $14.4 million. Hertz used the proceeds from
the September 2010 issuance of $700 million aggregate principal amount of 7.50% Senior Notes, the
December 2010 issuance of $500 million aggregate principal amount of 7.375% Senior Notes and the
February 2011 issuance of $500 million aggregate principal amount of 6.75% Senior Notes (see below)
for these redemptions. Premiums paid are recorded in ‘‘Other (income) expense, net’’ on our
consolidated statement of operations.
In February 2011, Hertz issued $500 million aggregate principal amount of 6.75% Senior Notes due
2019. The 6.75% Senior Notes are guaranteed on a senior unsecured basis by the domestic subsidiaries
of Hertz that guarantee its Senior Credit Facilities. In March 2011, Hertz issued an additional $500 million
aggregate principal of the 6.75% Senior Notes due 2019. The proceeds of this March 2011 offering were
used in April 2011 to redeem $480 million principal amount of Hertz’s outstanding 8.875% Senior Notes
due 2014 which resulted in premiums paid during the year ended December 31, 2011, of $10.7 million
recorded in ‘‘Other (income) expense, net’’ on our consolidated statement of operations and the write-off
of unamortized debt costs of $5.8 million.
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.
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