Avis 2014 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2014 Avis annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 137

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

50
(c) The floating rate term loan is part of the Company’s senior revolving 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. As of December 31, 2014, the floating term rate loan due 2019 bears interest at
the greater of three-month LIBOR or 0.75%, plus 225 basis points, for an aggregate rate of 3.00%. The Company has
entered into a swap to hedge $600 million of its interest rate exposure related to the floating rate term loan at an
aggregate rate of 3.96%.
(d) The change in balance of 6% Euro-denominated Senior Notes primarily represents the issuance of €200 million of
additional notes (approximately $275 million, at issuance) offset by a reduction of $76 million due to currency exchange
rate movements.
The following table summarizes the components of our debt under vehicle programs, including related party debt
due to Avis Budget Rental Car Funding:
As of December 31,
2014 2013 Change
North America – Debt due to Avis Budget Rental Car Funding (a) $ 6,340 $ 5,656 $ 684
North America – Canadian borrowings (b) 489 400 89
International – Debt borrowings 690 731 (41)
International – Capital leases 314 289 25
Truck Rental – Debt borrowings 252 226 26
Other 31 35 (4)
Total $ 8,116 $ 7,337 $ 779
__________
(a) The increase reflects additional borrowings principally to fund an increase in the Company's fleet driven by increased
volume and the acquisition of its Budget licensee for Southern California.
(b) The increase includes additional borrowings to fund an increase in the Company’s fleet driven by the acquisition of its
Budget licensee for Edmonton.
The following table provides the contractual maturities for our corporate debt and our debt under vehicle
programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2014:
Corporate
Debt
Debt Under
Vehicle
Programs
Due in 2015 $28$1,345
Due in 2016 17 2,328
Due in 2017 562 1,004
Due in 2018 12 1,629
Due in 2019 942 1,392
Thereafter 1,859 418
$ 3,420 $ 8,116
At December 31, 2014, we had approximately $5.4 billion of available funding under our various financing
arrangements (comprised of $1.0 billion of availability under our committed credit facilities and approximately $4.4
billion available for use in our vehicle programs). As of December 31, 2014, the committed non-vehicle-backed
credit facilities available to us and/or our subsidiaries included:
Total
Capacity
Outstanding
Borrowings
Letters of
Credit
Issued
Available
Capacity
Senior revolving credit facility maturing 2018 (a) $1,800 $ — $ 783 $ 1,017
Other credit facilities (b) 12 1 — 11
__________
(a) The senior revolving credit facility bears interest at one-month LIBOR plus 200 basis points and 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, 2014.