Hertz 2014 Annual Report Download - page 146

Table of Contents
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
Under the terms of its Senior Term Facility and Senior ABL Facility, the Company is not subject to ongoing financial maintenance covenants;
however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject Hertz 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, 2014, the Company was not subject to the fixed
charge coverage ratio test.
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Certain amounts of cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under the Fleet
Debt facilities and the Like-Kind Exchange Program ("LKE Program".) As of December 31, 2014 and December 31, 2013, the portion of total
restricted cash and cash equivalents that was associated with the Fleet Debt facilities was $515 million and $772 million, respectively. Restricted
cash balances fluctuate based on the timing of purchases and sales of revenue earning vehicles and could also be impacted by the occurrence of
an amortization event.

The Company's borrowing capacity and availability comes from its "revolving credit facilities," which are a combination of asset-backed
securitization facilities and asset-based revolving credit facilities. Creditors under each of its revolving credit facilities have a claim on a specific
pool of assets as collateral. The Company's ability to borrow under each revolving credit facility is a function of, among other things, the value of
the assets in the relevant collateral pool. The Company refers to the amount of debt the Company can borrow given a certain pool of assets as the
borrowing base.
The Company refers to "Remaining Capacity" as the maximum principal amount of debt permitted to be outstanding under the respective facility
(i.e., the amount of debt the Company could borrow assuming the Company possessed sufficient assets as collateral) less the principal amount of
debt then-outstanding under such facility. The Company refers to "Availability Under Borrowing Base Limitation" as the lower of Remaining
Capacity or the borrowing base less the principal amount of debt then-outstanding under such facility (i.e., the amount of debt the Company could
borrow given the collateral the Company possesses at such time).
As of December 31, 2014, the following facilities were available to the Company:








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

Senior ABL Facility $ 1,142

$ 1,019
Total Corporate Debt 1,142

1,019




HVF II U.S. Fleet Variable Funding Notes 481

—
HFLF Variable Funding Notes 153

—
U.S. Fleet Financing Facility 26

19
European Securitization 214

2
Hertz-Sponsored Canadian Securitization 58
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—
Dollar Thrifty-Sponsored Canadian Securitization 89
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—
Australian Securitization 92

—
Capitalized Leases 42

3
Total Fleet Debt 1,155

24
Total $ 2,297

$ 1,043
As of December 31, 2014, the Senior ABL Facility had $1,030 million available under the letter of credit facility sublimit, subject to borrowing base
restrictions.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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