Hertz 2011 Annual Report Download - page 136

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The obligations of HHN BV under the European Fleet Debt are guaranteed by Hertz and certain of
Hertz’s domestic and foreign subsidiaries.
The agreements governing the European Revolving Credit Facility and the indenture governing the
European Fleet Notes contain covenants that apply to the Hertz credit group similar to those for the
Senior Notes. In addition, the agreements and indenture contain a combination of security
arrangements, springing covenants and ‘‘no liens’’ covenants intended to give the lenders under the
European Fleet Debt enhanced recourse to certain assets of HHN BV and certain foreign subsidiaries of
Hertz. The terms of the European Fleet Debt permit HHN BV to incur additional indebtedness that would
be pari passu with either the European Revolving Credit Facility or the European Fleet Notes.
European Securitization
In July 2010, certain foreign subsidiaries entered into a facility agreement that provides for aggregate
maximum borrowings of e400 million (the equivalent of $517.6 million as of December 31, 2011) (subject
to borrowing base availability) on a revolving basis under an asset-backed securitization facility, or the
‘‘European Securitization.’’ The European Securitization is the primary fleet financing for our rental car
operations in France and The Netherlands. The lenders under the European Securitization have been
granted a security interest primarily in the owned rental car fleet used in our car rental operations in
France and The Netherlands and certain contractual rights related to such vehicles.
In August 2011, we extended the expected maturity of our European Securitization Facility to July 2013.
In connection with the extension, we made a number of modifications to the financing arrangement
including increasing the advance rate and decreasing pricing.
Canadian Securitization
In May 2007, certain foreign subsidiaries entered into a credit agreement that provides for aggregate
maximum borrowings of CAD$225 million (the equivalent of $219.6 million as of December 31, 2011)
(subject to borrowing base availability) on a revolving basis under an asset-backed securitization facility,
or as amended, the ‘‘Canadian Securitization.’’ The Canadian Securitization is the primary fleet financing
for our rental car operations in Canada. The lender under the Canadian Securitization has been granted
a security interest primarily in the owned rental car fleet used in our car rental operations in Canada and
certain contractual rights related to such vehicles as well as certain other assets owned by entities
connected to the financing.
In November 2011, we extended the maturity of the Canadian Securitization to January 2012 and
reduced the facility size to CAD$200 million (equivalent to $195.2 million as of December 31, 2011). In
connection with the extension, we made a number of modifications to the financing arrangement
including decreasing the pricing.
In January 2012, Hertz amended the Canadian Securitization to extend the maturity date from January
2012 to March 2012.
Australian Securitization
In November 2010, certain foreign subsidiaries entered into a credit agreement that provides for
aggregate maximum borrowings of A$250 million (the equivalent of $252.4 million as of December 31,
2011) (subject to borrowing base availability) on a revolving basis under an asset-backed securitization
facility, or the ‘‘Australian Securitization.’’ The Australian Securitization is the primary fleet financing for
our rental car operations in Australia. The lenders under the Australian Securitization have been granted
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