PARK RIDGE, N.J., Sept.30, 2013 /PRNewswire/ --Hertz Global Holdings, Inc. (NYSE: HTZ) announced today that its wholly owned subsidiary, Donlen Corporation ("Donlen"), has successfully completed the establishment of a new fleet lease securitization platform to finance its U.S. fleet lease operations going forward. In connection with the establishment of the new financing platform, Hertz Fleet Lease Funding LP ("HFLF"), a wholly owned special purpose subsidiary of Donlen, successfully completed a $1.1 billion financing, allocated between a one year variable funding note facility with an expected maturity date of September 29, 2014 (the "Series 2013-1 Notes") and a two year variable funding note facility with an expected maturity date of September 29, 2015 (the "Series 2013-2 Notes").
The aggregate maximum principal amount of the Series 2013-1 Notes is $850 million, approximately $730 million of which was funded as of September 30, 2013. The aggregate maximum principal amount of the Series 2013-2 Notes is $250 million, approximately $215 million of which was funded as of September 30, 2013. The Series 2013-1 Notes and Series 2013-2 Notes each are comprised of three classes, Class A, Class B and Class C, that are rated "Aaa", "Aa2 and "A2" by Moody's, respectively.
HFLF is structured as a master trust, with one or more revolving pools of collateral. The notes issued by HFLF are ultimately backed by a special unit of beneficial interest in a pool of leases and the related vehicles. The leases were originated in the name of Donlen Trust. A performance guarantee of Donlen's obligations as servicer and administrator in respect of the Series 2013-1 Notes and Series 2013-2 Notes is provided by The Hertz Corporation.
The proceeds of the Series 2013-1 Notes and the Series 2013-2 Notes were used to refinance the GN Funding II L.L.C. Facility, that was due to mature on December 31, 2013. The GN Funding II L.L.C. facility has now been terminated. The new HFLF financing platform also provides for the issuance from time to time of medium term asset backed notes.
Hertz Global Holdings, through its subsidiary The Hertz Corporation ("Hertz," the "Company" or "we"), operates its car rental business through the Hertz, Dollar and Thrifty brands from approximately 10,900 corporate, licensee and franchisee locations in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. Hertz is the largest worldwide airport general use car rental brand, operating from approximately 9,300 corporate and licensee locations in approximately 150 countries. Our Dollar and Thrifty brands have approximately 1,600 corporate and franchisee locations in approximately 90 countries. Our Hertz brand name is one of the most recognized in the world, signifying leadership in quality rental services and products. We are one of the only car rental companies that has an extensive network of company-'operated rental locations both in the United States and in all major European markets. We believe that we maintain the leading airport car rental brand market share, by overall reported revenues, in the United States and at 120 major airports in Europe where we have company-'operated locations and where data regarding car rental concessionaire activity is available. We believe that we also maintain the second largest market share, by overall reported revenues, in the off-airport car rental market in the United States. In our equipment rental business segment, we rent equipment through approximately 340 branches in the United States, Canada, France, Spain, China and Saudi Arabia, as well as through our international licensees. We and our predecessors have been in the car rental business since 1918 and in the equipment rental business since 1965. We also own Donlen Corporation, based in Northbrook, Illinois, which is a leader in providing fleet leasing and management services.
Donlen is the industry's leading provider of integrated financing and management solutions for corporate fleets. Utilizing a highly consultative and strategic approach, Donlen helps fleets reduce cost, improve utilization, and increase driver safety and productivity. Donlen's innovation has been honored with the Computerworld 2012 Honors Laureate for Economic Development, the 2012 and 2013 InformationWeek 500 List of Top Technology Innovators Across America, and recipient of the 2013 CIO 100. Their workplace excellence has been recognized on the IAOP The Global Outsourcing 100® list for seven of the last eight years, and as one of the 101 Best and Brightest Places to Work For in Chicago each year from 2007-2012. Founded in 1965 and headquartered in Northbrook, IL, Donlen is a wholly owned subsidiary of The Hertz Corporation. For more information about Donlen, visit www.donlen.com.
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This communication contains "forward-looking statements." Examples of forward-looking statements include information concerning our liquidity and its possible or assumed future results of operations, including descriptions of its business strategy. These forward-looking statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors that the Company believes are appropriate in these circumstances. You should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. Many factors could affect our actual financial results and could cause actual results to differ materially from those expressed in the forward-looking statements, due to a variety of important factors, both positive and negative.
Among other items, such factors could include: our ability to integrate the car rental operations of Dollar Thrifty and realize operational efficiencies from the acquisition; the risk that expected synergies and cost savings from the Dollar Thrifty acquisition may not be fully realized or realized within the expected time frame; the operational and profitability impact of the Advantage divestiture and the divestiture of the airport locations that we agreed to undertake in order to secure regulatory approval for the Dollar Thrifty acquisition; levels of travel demand, particularly with respect to airline passenger traffic in the United States and in global markets; the impact of pending and future U.S. governmental action to address budget deficits through reductions in spending and similar austerity measures, which could materially adversely affect unemployment rates and consumer spending levels; significant changes in the competitive environment, including as a result of industry consolidation, and the effect of competition in our markets, including on our pricing policies or use of incentives; occurrences that disrupt rental activity during our peak periods; our ability to achieve cost savings and efficiencies and realize opportunities to increase productivity and profitability; an increase in our fleet costs as a result of an increase in the cost of new vehicles and/or a decrease in the price at which we dispose of used vehicles either in the used vehicle market or under repurchase or guaranteed depreciation programs; our ability to accurately estimate future levels of rental activity and adjust the size and mix of our fleet accordingly; our ability to maintain sufficient liquidity and the availability to us of additional or continued sources of financing for our revenue earning equipment and to refinance our existing indebtedness; safety recalls by the manufacturers of our vehicles and equipment; a major disruption in our communication or centralized information networks; financial instability of the manufacturers of our vehicles and equipment; any impact on us from the actions of our licensees, franchisees, dealers and independent contractors; our ability to maintain profitability during adverse economic cycles and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); shortages of fuel and increases or volatility in fuel costs; our ability to successfully integrate acquisitions and complete dispositions; our ability to maintain favorable brand recognition; costs and risks associated with litigation; risks related to our indebtedness, including our substantial amount of debt, our ability to incur substantially more debt and increases in interest rates or in our borrowing margins; our ability to meet the financial and other covenants contained in our Senior Credit Facilities, our outstanding unsecured Senior Notes and certain asset-backed and asset-based arrangements; changes in accounting principles, or their application or interpretation, and our ability to make accurate estimates and the assumptions underlying the estimates, which could have an effect on earnings; changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations where such actions may affect our operations, the cost thereof or applicable tax rates; changes to our senior management team; the effect of tangible and intangible asset impairment charges; the impact of our derivative instruments, which can be affected by fluctuations in interest rates and commodity prices; and our exposure to fluctuations in foreign exchange rates. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
The Company therefore cautions you against relying on these forward-looking statements. All forward-looking statements attributable to the Company or persons acting on the Company's behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE The Hertz Corporation