Avis 2010 Annual Report Download - page 32

Table of Contents
unhedged interest rate sensitive debt of approximately $754 million. During our seasonal borrowing peak in 2010, outstanding unhedged interest
rate sensitive debt totaled approximately $2.5 billion.
Restrictive covenants in agreements and instruments governing our debt may adversely affect our ability to operate our business.
The terms of certain of our indebtedness, including the indentures governing our senior unsecured notes and the agreement governing our senior
credit facilities contain, and our future debt instruments may contain, various provisions that limit our ability to, among other things:
Risks related to the Separation
We are relying on Realogy, Wyndham Worldwide and Travelport to fulfill their obligations under the Separation Agreement and other
agreements.
Pursuant to the Separation Agreement and related agreements (including a tax sharing agreement, the “Tax Sharing Agreement”), Realogy and
Wyndham Worldwide are responsible for 62.5% and 37.5%, respectively, of certain contingent and other of our corporate liabilities including
those relating to unresolved tax and legal matters as well as 100% of certain liabilities that relate to their respective businesses (the “Assumed
Obligations”). More specifically, Realogy and Wyndham Worldwide have generally assumed and are responsible for the payment of their
specified percentage of (i) all taxes imposed on us and certain of our subsidiaries and (ii) certain of our contingent and other corporate liabilities
and/or those of our subsidiaries to the extent incurred prior to August 23, 2006. If either Realogy or Wyndham were to default in its payment,
when due, of any such Assumed Obligations, each non-defaulting party, including us, would be required to pay an equal portion of the defaulted
amounts, and any such default may adversely impact our results of operations, financial condition or cash flows.
Realogy was acquired by an affiliate of Apollo Management VI, L.P. following the Separation. While the acquisition did not affect Realogy’s
obligation to satisfy its specified percentage of its Assumed Obligations, as a
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incur additional debt;
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provide guarantees in respect of obligations of other persons;
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issue redeemable stock and preferred stock;
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pay dividends or distributions or redeem or repurchase capital stock;
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prepay, redeem or repurchase debt;
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make loans, investments and capital expenditures;
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enter into transactions with affiliates;
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create or incur liens;
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make distributions from our subsidiaries;
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sell assets and capital stock of our subsidiaries;
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make acquisitions; and
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consolidate or merge with or into, or sell substantially all of our assets to, another person.