Avis 2013 Annual Report Download - page 99

F-27
COMMITTED CREDIT FACILITIES AND AVAILABLE FUNDING ARRANGEMENTS
At December 31, 2013, the committed corporate credit facilities available to the Company and/or its
subsidiaries were as follows:
Total
Capacity
Outstanding
Borrowings
Letters of
Credit Issued
Available
Capacity
Senior revolving credit facility maturing 2018 (a) $1,650$ —$ 598$1,052
Other facilities (b) 13 1 — 12
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(a) The senior revolving credit facility bears interest at one-month LIBOR, plus 225 basis points. The senior revolving credit facility
is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the
Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.
(b) These facilities encompass bank overdraft lines of credit, bearing interest of 4.50% to 5.69% as of December 31, 2013.
During 2013, the Company extended the maturity of the senior revolving credit facility from 2016 to 2018,
expanded its borrowing capacity under the facility, and reduced its borrowing spread under the facility by 75
basis points.
At December 31, 2013, the Company had various uncommitted credit facilities available, which bear interest
at rates of 0.52% to 2.50%, under which it had drawn approximately $4 million.
DEBT COVENANTS
The agreements governing the Company’s indebtedness contain restrictive covenants, including restrictions
on dividends paid to the Company by certain of its subsidiaries, the incurrence of additional indebtedness
by the Company and certain of its subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback
transactions. The Company’s senior credit facility contain financial and other covenants, including a
maximum leverage ratio. As of December 31, 2013, the Company was in compliance with the financial
covenants of its senior credit facility.
14. Debt under Vehicle Programs and Borrowing Arrangements
Debt under vehicle programs including related party debt due to Avis Budget Rental Car Funding (AESOP)
LLC (“Avis Budget Rental Car Funding”), consisted of:
As of December 31,
2013 2012
North America – Debt due to Avis Budget Rental Car Funding (a) $ 5,656 $ 5,203
North America – Canadian borrowings 400 353
International – Debt borrowings 731 679
International – Capital leases 289 315
Truck Rental – Debt borrowings (b) 226 253
Other (c) 35 3
Total $ 7,337 $ 6,806
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(a) The increase reflects additional borrowings principally to fund an increase in the Company’s fleet driven by
increased rental volume and the acquisitions of Zipcar and Payless.
(b) The decrease reflects reduced borrowings due to a decrease in the size of the Company’s truck fleet.
(c) The increase is principally related to Zipcar capital leases.
North America
Debt due to Avis Budget Rental Car Funding. Avis Budget Rental Car Funding, an unconsolidated
bankruptcy remote qualifying special purpose limited liability company, issues privately placed notes to
investors as well as to banks and bank-sponsored conduit entities. Avis Budget Rental Car Funding uses the
proceeds from its note issuances to make loans to a wholly-owned subsidiary of the Company, AESOP
Leasing LP (“AESOP Leasing”), on a continuing basis. AESOP Leasing is required to use the proceeds of
such loans to acquire or finance the acquisition of vehicles used in the Company’s rental car operations. By
issuing debt through the Avis Budget Rental Car Funding program, the Company pays a lower rate of
interest than if it had issued debt directly to third parties. Avis Budget Rental Car Funding is not consolidated,