Hertz 2012 Annual Report Download - page 147

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
or as amended, the ‘‘Canadian Securitization.’’ The Canadian Securitization is the primary fleet financing
for our car rental operations in Canada. The lender under the Canadian Securitization has been granted
an indirect 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, Hertz’s indirect wholly owned subsidiary HC Limited Partnership extended the
maturity of the Canadian Securitization to January 2012 and reduced the facility size to
CAD$200.0 million (equivalent to $201.0 million as of December 31, 2012). In connection with the
extension, HC Limited Partnership made a number of modifications to the financing arrangement
including decreasing the pricing.
In January 2012, HC Limited Partnership amended the Canadian Securitization to extend the maturity
date from January 2012 to March 2012. In March 2012, HC Limited Partnership amended the Canadian
Securitization to extend the maturity date from March 2012 to May 2012. In the second quarter of 2012,
the maturity date was extended to June 2013.
Dollar Thrifty-Sponsored Canadian Securitization
In March 2012 certain foreign subsidiaries of Dollar Thrifty entered into a trust indenture that permits the
issuance of term and revolving rental car asset-backed securities, the collateral for which consists
primarily of the rental car fleet used in Dollar Thrifty’s Canadian car rental operations and contractual
rights related to such vehicles. These subsidiaries became indirect wholly-owned subsidiaries of Hertz
when Hertz acquired Dollar Thrifty.
In March 2012 these subsidiaries issued asset-backed variable funding notes that provide for aggregate
maximum borrowings of CAD$150.0 million (the equivalent of $150.7 million as of December 31, 2012)
(subject to borrowing base availability) on a revolving basis, or the ‘‘Dollar Thrifty-Sponsored Canadian
Securitization.’’ The expected final maturity of the Dollar Thrifty-Sponsored Canadian Securitization is
August 2014.
Australian Securitization
In November 2010, certain foreign subsidiaries entered into a facility agreement that provides for
aggregate maximum borrowings of A$250.0 million (the equivalent of $259.4 million as of December 31,
2012) (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
Hertz’s car rental operations in Australia. The lender under the Australian Securitization has been
granted a security interest primarily in the owned rental car fleet used in our car rental operations in
Australia and certain contractual rights related to such vehicles. In connection with the issuance of the
Australian Securitization, an interest rate cap was purchased by a subsidiary, HA Fleet Pty Limited.
Concurrently, Hertz sold an offsetting interest rate cap, thereby neutralizing the hedge on a consolidated
basis and reducing the net cost of the hedge.
In October 2012, Hertz’s indirect, wholly-owned subsidiary HA Fleet Pty Limited amended the Australian
Securitization to extend the expected maturity date thereunder to December 2014 in connection with this
transaction both HA Fleet Pty Limited and Hertz amended the existing interest rate caps, modifying and
extending the amortization schedule to the new maturity date of the securitization.
See Note 14—Financial Instruments.
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