Components of debt |
The Company's debt consists of the following (in millions): | | | | | | | | | | | | | | | | Facility | | Weighted Average Interest Rate at March 31, 2016 | | Fixed or Floating Interest Rate | | Maturity | | March 31, 2016 | | December 31, 2015 | Corporate Debt | | | | | | | | | | | Senior Term Facility | | 3.26% | | Floating | | 3/2018 | | $ | 2,056 |
| | $ | 2,062 |
| Senior ABL Facility | | N/A | | Floating | | 3/2016–3/2017 | | — |
| | — |
| Senior Notes(1) | | 6.58% | | Fixed | | 4/2018–10/2022 | | 3,900 |
| | 3,900 |
| Promissory Notes | | 7.00% | | Fixed | | 1/2028 | | 27 |
| | 27 |
| Other Corporate Debt | | 3.92% | | Fixed | | Various | | 63 |
| | 66 |
| Unamortized Debt Issuance Costs and Net (Discount) Premium (Corporate) | | | | | | | | (40 | ) | | (44 | ) | Total Corporate Debt | | | | | | | | 6,006 |
| | 6,011 |
|
| | | | | | | | | | | | | | | | Facility | | Weighted Average Interest Rate at March 31, 2016 | | Fixed or Floating Interest Rate | | Maturity | | March 31, 2016 | | December 31, 2015 | Fleet Debt | | | | | | | | | | | HVF U.S. Fleet Medium Term Notes | | | | | | | | | | | HVF Series 2010-1(2) | | 4.96% | | Fixed | | 2/2018 | | 115 |
| | 240 |
| HVF Series 2011-1(2) | | 3.51% | | Fixed | | 3/2017 | | 230 |
| | 230 |
| HVF Series 2013-1(2) | | 1.70% | | Fixed | | 8/2016–8/2018 | | 896 |
| | 950 |
| | | | | | | | | 1,241 |
| | 1,420 |
| HVF II U.S. ABS Program | | | | | | | | | | | HVF II U.S. Fleet Variable Funding Notes | | | | | | | | | | | HVF II Series 2013-A | | 1.51% | | Floating | | 10/2017 | | 1,044 |
| | 980 |
| HVF II Series 2013-B | | 1.55% | | Floating | | 10/2017 | | 1,013 |
| | 1,308 |
| HVF II Series 2014-A | | 2.26% | | Floating | | 10/2016 | | 1,393 |
| | 1,737 |
| | | | | | | | | 3,450 |
| | 4,025 |
| HVF II U.S. Fleet Medium Term Notes | | | | | | | | | | | HVF II Series 2015-1(2) | | 2.93% | | Fixed | | 3/2020 | | 780 |
| | 780 |
| HVF II Series 2015-2(2) | | 2.30% | | Fixed | | 9/2018 | | 250 |
| | 250 |
| HVF II Series 2015-3(2) | | 2.96% | | Fixed | | 9/2020 | | 350 |
| | 350 |
| HVF II Series 2016-1(2) | | 2.72% | | Fixed | | 3/2019 | | 439 |
| | — |
| HVF II Series 2016-2(2) | | 3.25% | | Fixed | | 3/2021 | | 561 |
| | — |
| | | | | | | | | 2,380 |
| | 1,380 |
| Donlen ABS Program | | | | | | | | | | | HFLF Variable Funding Notes | | | | | | | | | | | HFLF Series 2013-2 Notes(2) | | 1.52% | | Floating | | 9/2017 | | 450 |
| | 370 |
| | | | | | | | | 450 |
| | 370 |
| HFLF Medium Term Notes | | | | | | | | | | | HFLF Series 2013-3 Notes(2) | | 1.16% | | Floating | | 9/2016–11/2016 | | 217 |
| | 270 |
| HFLF Series 2014-1 Notes(2) | | 1.02% | | Floating | | 12/2016–3/2017 | | 245 |
| | 288 |
| HFLF Series 2015-1 Notes(2) | | 1.11% | | Floating | | 3/2018–5/2018 | | 295 |
| | 295 |
| | | | | | | | | 757 |
| | 853 |
|
| | | | | | | | | | | | | | | | Facility | | Weighted Average Interest Rate at March 31, 2016 | | Fixed or Floating Interest Rate | | Maturity | | March 31, 2016 | | December 31, 2015 | Other Fleet Debt | | | | | | | | | | | U.S. Fleet Financing Facility | | 3.19% | | Floating | | 3/2017 | | 157 |
| | 190 |
| European Revolving Credit Facility | | 2.41% | | Floating | | 10/2017 | | 283 |
| | 273 |
| European Fleet Notes | | 4.38% | | Fixed | | 1/2019 | | 480 |
| | 464 |
| European Securitization(2) | | 1.41% | | Floating | | 10/2017 | | 259 |
| | 267 |
| Canadian Securitization(2) |
| 1.80% |
| Floating |
| 1/2018 |
| 168 |
|
| 148 |
| Australian Securitization(2) | | 3.75% | | Floating | | 12/2016 | | 97 |
| | 98 |
| Brazilian Fleet Financing Facility | | 17.93% | | Floating | | 4/2016 | | 8 |
| | 7 |
| Capitalized Leases | | 2.67% | | Floating | | 5/2016–3/2020 | | 376 |
| | 362 |
| | | | | | | | | 1,828 |
| | 1,809 |
| Unamortized Debt Issuance Costs and Net (Discount) Premium (Fleet) | | | | | | | | (40 | ) | | (34 | ) | Total Fleet Debt | | | | | | | | 10,066 |
| | 9,823 |
| Total Debt | | | | | | | | $ | 16,072 |
| | $ | 15,834 |
|
N/A - Not Applicable
| | (1) | References to the "Senior Notes" include the series of Hertz's unsecured senior notes set forth on the table below. Outstanding principal amounts for each such series of the Senior Notes is also specified below: |
| | | | | | | | | (In millions) | Outstanding Principal | Senior Notes | March 31, 2016 | | December 31, 2015 | 4.25% Senior Notes due April 2018 | $ | 250 |
| | $ | 250 |
| 7.50% Senior Notes due October 2018 | 700 |
| | 700 |
| 6.75% Senior Notes due April 2019 | 1,250 |
| | 1,250 |
| 5.875% Senior Notes due October 2020 | 700 |
| | 700 |
| 7.375% Senior Notes due January 2021 | 500 |
| | 500 |
| 6.25% Senior Notes due October 2022 | 500 |
| | 500 |
| | $ | 3,900 |
| | $ | 3,900 |
|
| | (2) | Maturity reference is to the "expected final maturity date" as opposed to the subsequent "legal maturity date." The expected final maturity date is the date by which Hertz and investors in the relevant indebtedness expect the relevant indebtedness to be repaid, which in the case of the HFLF Medium Term Notes was based upon various assumptions made at the time of the pricing of such notes. The legal final maturity date is the date on which the relevant indebtedness is legally due and payable. |
The fair value of debt is estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs). | | | | | | | | | | | | | | | | | | As of March 31, 2016 | | As of December 31, 2015 | (In millions) | Nominal Unpaid Principal Balance | | Aggregate Fair Value | | Nominal Unpaid Principal Balance | | Aggregate Fair Value | Corporate Debt | $ | 6,046 |
| | $ | 6,126 |
| | $ | 6,055 |
| | $ | 6,134 |
| Fleet Debt | 10,106 |
| | 10,103 |
| | 9,857 |
| | 9,854 |
| Total | $ | 16,152 |
| | $ | 16,229 |
| | $ | 15,912 |
| | $ | 15,988 |
|
|
Schedule of facilities available for the use of the company and its subsidiaries |
The following facilities were available to the Company as of March 31, 2016: | | | | | | | | | (In millions) | Remaining Capacity | | Availability Under Borrowing Base Limitation | Corporate Debt | | | | Senior ABL Facility | $ | 1,488 |
| | $ | 1,481 |
| Total Corporate Debt | 1,488 |
| | 1,481 |
| Fleet Debt | | | | HVF II U.S. Fleet Variable Funding Notes | 2,125 |
| | — |
| HFLF Variable Funding Notes | 50 |
| | — |
| European Revolving Credit Facility | — |
| | — |
| European Securitization | 192 |
| | 4 |
| Canadian Securitization | 99 |
| | — |
| Australian Securitization | 94 |
| | — |
| Capitalized Leases | 50 |
| | 1 |
| Total Fleet Debt | 2,610 |
| | 5 |
| Total | $ | 4,098 |
| | $ | 1,486 |
|
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