Hertz 2013 Annual Report Download - page 63

Table of Contents
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Maturities
The nominal amounts of maturities of debt for each of the twelve-month periods ending December 31 (in millions of dollars) are as follows:
2014 $ 1,968.7
(including $842.6 of other short-term borrowings*)
2015 $ 5,284.5
2016 $ 1,367.5
2017 $ 366.0
2018 $3,643.5
After 2018 $ 3,587.8
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*Our short-term borrowings as of December 31, 2013 include, among other items, the amounts outstanding under the European Securitization, Hertz-
Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization and Brazilian Fleet Financing
Facility. As of December 31, 2013, short-term borrowings had a weighted average interest rate of 3.2%. In February 2014, the Hertz-Sponsored
Canadian Securitization and Dollar Thrifty-Sponsored Canadian Securitization had been extended to March 2015. See Note 19 to the Notes to our
audited annual consolidated financial statements included in this Annual Report.
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.
For subsequent events relating to our indebtedness, see Note 19 to the Notes to our audited annual consolidated financial statements
included in this Annual Report.
Indentures for the Senior Notes
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.
We refer to Hertz and its subsidiaries as the Hertz credit group. 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.
Other Financing Risks
A significant number of cars that we purchase are subject to repurchase by car manufacturers under contractual repurchase or guaranteed
depreciation programs. Under these programs, car manufacturers agree to repurchase cars at a specified price or guarantee the depreciation
rate on the cars during a specified time period, typically subject to certain car condition and mileage requirements. We use book values
derived from this specified price or guaranteed depreciation rate to calculate financing capacity under certain asset-backed and asset-based
financing arrangements.
In the event of a bankruptcy of a car manufacturer, our liquidity would be impacted by several factors including reductions in fleet residual
values and the risk that we would be unable to collect outstanding receivables due to us from such bankrupt manufacturer. In addition, the
program cars manufactured by any such company would need to be removed from our financing facilities or re-designated as non-program
vehicles, which would require us to furnish additional credit enhancement associated with these program vehicles. For a discussion of the
risks associated with a manufacturer's bankruptcy or our reliance on asset-backed and asset-based financing, see "Item 1A—Risk Factors"
included in this Annual Report.
We rely significantly on asset-backed and asset-based financing arrangements to purchase cars for our domestic and international car rental
fleet. The amount of financing available to us pursuant to these programs depends on a number of factors, many of which are outside our
control, including recently adopted legislation, proposed SEC rules and regulations and other legislative and administrative developments. In
this regard, there has been uncertainty regarding
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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