Hertz 2014 Annual Report Download - page 144

Table of Contents
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References to the “Capitalized Leases” include the capitalized lease financings outstanding in the United Kingdom, or the “U.K. Leveraged
Financing,” Australia, The Netherlands and the U.S. The amount committed under the U.K. Leveraged Financing is the largest portion of the
Capitalized Leases.
In May 2013, the U.K. Leveraged Financing was amended to create a commitment period running through October 2013 that provided for additional
amounts available under the U.K. Leveraged Financing of £25 million (subject to asset availability).
In July 2014, the U.K. Leveraged Financing was amended to extend the final maturity date to February 2015 and to provide for aggregate
maximum leasing capacity (subject to asset availability) of up to the equivalent of an additional £55 million for a seasonal commitment period
through November 2014.
In October 2014, the U.K. Leveraged Financing was amended to, among other things, (i) extend the maturity to October 2017 and (ii) increase the
aggregate maximum leasing capacity under the U.K. Leveraged Financing from £195 million to £225 million (subject to asset availability).
See Note 20, "Subsequent Events," regarding a seasonal increase to the maximum leasing capacity under, and additional waivers to, the U.K.
Leveraged Financing.
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In January 2014, Hertz discovered that a requirement under the HVF II Series 2013-B Notes was unknowingly not met, resulting in the occurrence
of an amortization event under the HVF II Series 2013-B Notes that also triggered amortization events under certain other series of its outstanding
U.S. rental car variable funding notes. As a result of the amortization event, its ability to borrow under these notes was temporarily restricted at
December 31, 2013. In January 2014, Hertz provided the required notices and obtained waivers from 100% of the noteholders required to waive
and cure the related amortization events.
Due to the Company's accounting restatement, investigation and remediation activities, the Company failed to file certain quarterly and annual
reports and certain of its subsidiaries failed to file statutory financial statements within certain time periods set forth in the documentation of
various of its (and/or its special purpose subsidiaries') financing facilities which resulted in the occurrence of various potential and/or actual
defaults and potential amortization events under certain of such financing facilities.
In May 2014, the Company and/or certain of its subsidiaries obtained waivers effective through June 15, 2014 from the requisite lenders or
noteholders under the Senior ABL Facility, HVF II U.S. Fleet Variable Funding Notes, European Revolving Credit Facility, European Securitization,
Hertz-Sponsored Canadian Securitization, Dollar Thrifty-Sponsored Canadian Securitization, U.K. Leveraged Financing, and its U.S. Fleet
Financing Facility to waive the aforementioned events, as well as similar events that could arise from any restatement of annual and quarterly
financial statements previously delivered by the Company and/or certain of its subsidiaries under such facilities, and provided the required notices
to the various lenders or noteholders. In June 2014 and September 2014, the Company and/or certain of its subsidiaries obtained waivers, or
extensions of waivers, effective through November 14, 2014. In connection with the refinancings consummated on October 31, 2014, the Company
and/or certain of its subsidiaries obtained waivers, or extensions of waivers, under such facilities, as well as the Australian Securitization and
various counterparties in respect of derivative transactions, in each case, through June 30, 2015.
In July 2014, the Company and/or certain of its subsidiaries obtained waivers from the requisite lenders of the HVF U.S. Fleet Medium Term Notes
and RCFC U.S. Fleet Medium Term Notes to waive the aforementioned events, as well as similar events that could arise from any restatement of
annual and quarterly financial statements previously delivered by the Company and/or certain of its subsidiaries under such facilities, and provided
the required notices to the various lenders or noteholders. The waiver relating to Hertz's failure to furnish certain financial statements within certain
time periods was effective through December 30, 2014. The Company's ability to remove cash from these ABS financing facilities was temporarily
restricted during the period from May 2014 until mid July 2014 when the Company obtained such waivers. In December 2014, the Company
obtained an extension of the waiver from the requisite lenders or
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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