Hertz 2015 Annual Report Download - page 115

Table of Contents
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The agreements governing the European Revolving Credit Facility and the indenture governing the European Fleet Notes contain covenants that
apply to the Hertz credit group similar to those for the Senior Notes. The terms of the European Fleet Debt permit HHN BV to incur additional
indebtedness that would be pari passu with either the European Revolving Credit Facility or the European Fleet Notes.
European Securitization
In July 2010, certain of the Company's foreign subsidiaries entered into a facility agreement that provides for aggregate maximum borrowings of
€400 million (subject to borrowing base availability) on a revolving basis under an asset-backed securitization facility (the “European
Securitization”) The European Securitization is the primary fleet financing for its car rental operations in France and The Netherlands. The lenders
under the European Securitization have been granted a security interest primarily in the owned rental car fleet used in its car rental operations in
France and The Netherlands and certain contractual rights related to such vehicles.
In March 2014, the maturity date of the European Securitization was extended from July 2014 to July 2015.
In October 2014, the Company entered into an amendment agreement pursuant to which certain terms of the European Securitization were
amended. The amendment provides for, among other things, an extension of the maturity of the European Securitization from July 2015 to October
2016.
In October 2015, certain of Hertz’s foreign subsidiaries entered into an amendment agreement pursuant to which certain terms of the European
Securitization were amended. The amendment provides for, among other things, an extension of the maturity of the European Securitization from
October 2016 to October 2017.
Canadian Securitizations
In September 2015, Hertz established a new securitization platform, the “Canadian Securitization”, designed to facilitate its financing activities
relating to the vehicle fleet used by Hertz in the Canadian daily car rental operations of its Hertz, Dollar, Thrifty and Firefly brands. The lenders
under the Canadian Securitization have been granted a security interest primarily in the owned rental car fleet used in the Company's car rental
operations in Canada and certain contractual rights related to such vehicles as well as certain other assets owned by the Hertz entities connected
to the financing. TCL Funding Limited Partnership, a bankruptcy remote, indirect, wholly-owned, special purpose subsidiary of Hertz, or “Funding
LP,” is the issuer under the Canadian Securitization. In connection with the establishment of the Canadian Securitization, in September 2015,
Funding LP issued the Series 2015-A Variable Funding Rental Car Asset Backed Notes (the “Funding LP Series 2015-A Notes”) that provide for
aggregate maximum borrowings of CAD $350 million (subject to borrowing base availability) on a revolving basis and a maturity date of January
2018. The net proceeds from the sale of the Funding LP Series 2015-A Notes were used to pay in full the then-outstanding Hertz-Sponsored
Canadian Securitization and the Dollar Thrifty-Sponsored Canadian Securitization and there are no longer any amounts outstanding under the
Hertz-Sponsored Canadian Securitization and the Dollar Thrifty-Sponsored Canadian Securitization.
Hertz Sponsored Canadian Securitization
In May 2007, certain of the Company's foreign subsidiaries entered into a facility agreement that initially provided for aggregate maximum
borrowings of CAD $225 million (subject to borrowing base availability) on a revolving basis under an asset-backed securitization facility (as
amended, the “Canadian Securitization”). The Canadian Securitization is the primary fleet financing for its car rental operations in Canada. The
lender under the Canadian Securitization has been granted an indirect security interest primarily in the owned rental car fleet used in its car rental
operations in Canada and certain contractual rights related to such vehicles as well as certain other assets owned by its entities connected to the
financing.
In June 2013, the maturity date of the Canadian Securitization was extended to March 2014. In February 2014, the maturity date was extended to
March 2015 and in October 2014, the maturity date was extended to October 2016.
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