Hertz 2012 Annual Report Download - page 140

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Letters of Credit
As of December 31, 2012, there were outstanding standby letters of credit totaling $681.4 million. Of this
amount, $626.6 million was issued under the Senior Credit Facilities. As of December 31, 2012, none of
these letters of credit have been drawn upon.
Acquisition Bridge Financing
In August 2012 in conjunction with signing of the merger agreement with Dollar Thrifty, Hertz obtained
$1,950.0 million in financing commitments for use in acquiring Dollar Thrifty. In October 2012 after
having secured permanent financing for the Dollar Thrifty acquisition, Hertz terminated these
commitments having never drawn upon them.
CORPORATE DEBT
Senior Credit Facilities
Senior Term Facility: In March 2011, Hertz entered into a credit agreement that provides a
$1,400.0 million term loan, or as amended, the ‘‘Senior Term Facility.’’ In addition, the Senior Term
Facility includes a separate incremental pre-funded synthetic letter of credit facility in an aggregate
principal amount of $200.0 million. Subject to the satisfaction of certain conditions and limitations, the
Senior Term Facility allows for the incurrence of incremental term and/or revolving loans.
On October 9, 2012, Hertz entered into an Incremental Commitment Amendment to the Senior Term
Facility which provided for commitments for the Incremental Term Loans of $750.0 million under the
Senior Term Facility. Contemporaneously with the consummation of the Dollar Thrifty acquisition, the
Incremental Term Loans were fully drawn and the proceeds therefrom were used to: (i) finance a portion
of the consideration in connection with the Dollar Thrifty acquisition, (ii) pay off obligations of Dollar
Thrifty and its subsidiaries in connection with the Dollar Thrifty acquisition and (iii) pay fees and other
transaction expenses in connection with the Dollar Thrifty acquisition and the related financing
transactions.
The Incremental Term Loans are secured by the same collateral and guaranteed by the same guarantors
as the previously existing term loans under the Senior Term Facility. The Incremental Term Loans will, like
the previously existing term loans under the Senior Term Facility, mature on March 11, 2018 and the
interest rate per annum applicable thereto will be the same as such previously existing term loans. The
other terms of the Incremental Term Loans are also generally the same.
Senior ABL Facility: In March 2011, Hertz, HERC, and certain other of our subsidiaries entered into a
credit agreement that provides 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. We refer
to this facility, as amended, from time to time, as the ‘‘Senior ABL Facility.’’ Up to $1,500.0 million of the
Senior ABL Facility is available for the issuance of letters of credit, subject to certain conditions including
issuing lender participation. Subject to the satisfaction of certain conditions and limitations, the Senior
ABL Facility allows for the addition of incremental revolving and/or term loan commitments. In addition,
the Senior ABL Facility permits Hertz to increase the amount of commitments under the Senior ABL
Facility with the consent of each lender providing an additional commitment, subject to satisfaction of
certain conditions.
We refer to the Senior Term Facility and the Senior ABL Facility together as the ‘‘Senior Credit Facilities.’’
Hertz’s obligations under the Senior Credit Facilities are guaranteed by its immediate parent (Hertz
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