Hertz 2013 Annual Report Download - page 64

Table of Contents
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the potential impact of proposed SEC rules and regulations governing the issuance of asset-backed securities and additional requirements
contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III regulatory capital rules, a global regulatory
standard on bank capital adequacy, stress testing and market liquidity risk. While we will continue to monitor these developments and their
impact on our ABS program, the SEC rules and regulations, once adopted and implemented, may impact our ability and/or desire to engage
in asset-backed financings in the future. For further information concerning our asset-backed financing programs and our indebtedness, see
Note 5 to the Notes to our audited annual consolidated financial statements included in this Annual Report under the caption "Item 8
—Financial Statements and Supplementary Data." For a discussion of the risks associated with our reliance on asset-backed and asset-
based financing and the significant amount of indebtedness, see "Item 1A—Risk Factors" in this Annual Report.
For further information on our indebtedness, see Note 5 to the Notes to our audited annual consolidated financial statements included in this
Annual Report.
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Certain of our debt instruments and credit facilities contain a number of covenants that, among other things, limit or restrict the ability of the
borrowers and the guarantors to dispose of assets, incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness,
make certain restricted payments (including paying dividends, redeeming stock or making other distributions), create liens, make
investments, make acquisitions, engage in mergers, fundamentally change the nature of their business, make capital expenditures, or
engage in certain transactions with certain affiliates.
Under the terms of our Senior Term Facility and Senior ABL Facility, we are not subject to ongoing financial maintenance covenants;
however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Hertz credit group to a contractually
specified fixed charge coverage ratio of not less than 1:1 for the four quarters most recently ended. As of December 31, 2013, we were not
subject to such contractually specified fixed charge coverage ratio.
In addition to borrowings under our Senior Credit Facilities, we have a significant amount of additional debt outstanding. For further
information on the terms of our Senior Credit Facilities as well as our significant amount of other debt outstanding, see Note 5 to the Notes to
our audited annual consolidated financial statements included in this Annual Report under the caption "Item 8—Financial Statements and
Supplementary Data." For a discussion of the risks associated with our significant indebtedness, see "Item 1A—Risk Factors" in this annual
report.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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