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
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



Facility	Weighted Average Interest Rate at March 31, 2016	Fixed or Floating Interest Rate	Maturity	March 31, 2016			December 31, 2015
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
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 Company is highly leveraged and a substantial portion of its liquidity needs arise from debt service on its indebtedness and from the funding of its costs of operations, acquisitions and capital expenditures. The Company’s practice is to maintain sufficient liquidity through cash from operations, credit facilities and other financing arrangements, so that its operations are unaffected by adverse financial market conditions.

Fleet Debt

HVF II U.S. Fleet Medium Term Notes

In February 2016, HVF II issued the Series 2016-1 Rental Car Asset Backed Notes, Class A, Class B, Class C and Class D (collectively, the “HVF II Series 2016-1 Notes”) and Series 2016-2 Rental Car Asset Backed Notes, Class A, Class B, Class C and Class D (collectively, the “HVF II Series 2016-2 Notes”) in an aggregate principal amount of approximately $1.06 billion. The expected maturities of the HVF II Series 2016-1 Notes and the HVF II Series 2016-2 Notes are March 2019 and March 2021, respectively. The HVF II Series 2016-1 Notes are comprised of approximately $333 million aggregate principal amount of 2.32% Rental Car Asset Backed Notes, Class A, $81 million aggregate principal amount of 3.72% Rental Car Asset Backed Notes, Class B, $25 million aggregate principal amount of 4.75% Rental Car Asset Backed Notes, Class C, and $27 million aggregate principal amount of 5.73% Rental Car Asset Backed Notes, Class D. The HVF II Series 2016-2 Notes are comprised of approximately $425 million aggregate principal amount of 2.95% Rental Car Asset Backed Notes, Class A, $104 million aggregate principal amount of 3.94% Rental Car Asset Backed Notes, Class B, $32 million aggregate principal amount of 4.99% Rental Car Asset Backed Notes, Class C, and $34 million aggregate principal amount of 5.97% Rental Car Asset Backed Notes, Class D. The Class B Notes of each series are subordinated to the Class A Notes of such series. The Class C Notes of each series are subordinated to the Class A Notes and the Class B Notes of such series. The Class D Notes of each series are subordinated to the Class A Notes, the Class B Notes and the Class C Notes of such series. An affiliate of HVF II purchased the Class D Notes of each such series, therefore, approximately $61 million of the obligation is eliminated in consolidation.

HVF II U.S. Fleet Variable Funding Notes

The net proceeds from the issuance of the HVF II Series 2016-1 Notes and HVF II Series 2016-2 Notes, together with available cash, were used to repay approximately $741 million of the outstanding principal amount of the HVF II Series 2014-A Notes and approximately $264 million of the outstanding principal amount of the HVF II Series 2013-A Notes.

Borrowing Capacity and Availability

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

As of March 31, 2016, the Senior ABL Facility had $1.03 billion available under the letter of credit facility sublimit, subject to borrowing base restrictions.

Letters of Credit

As of March 31, 2016, there were outstanding standby letters of credit totaling $628 million. Of this amount, $615 million was issued under the Senior Term Facility and the Senior ABL Facility (together, the “Senior Credit Facilities”). As of March 31, 2016, none of these letters of credit have been drawn upon.

Cash Restrictions

Certain amounts of cash and cash equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under the Fleet Debt facilities and the Like-Kind Exchange Program ("LKE Program"). As of March 31, 2016 and December 31, 2015, the portion of total restricted cash and cash equivalents that was associated with the Fleet Debt facilities was $298 million and $289 million, respectively. Restricted cash balances fluctuate based on the timing of purchases and sales of revenue earning vehicles and could also be impacted by the occurrence of an amortization event (an event that results in the amortization of indebtedness prior to its expected maturity).

Special Purpose Entities

Substantially all of the revenue earning equipment and certain related assets are owned by special purpose entities, or are encumbered in favor of the lenders under the various credit facilities, other secured financings and asset-backed securities programs. None of such assets (including the assets owned by Hertz Vehicle Financing II LP, Hertz Vehicle Financing LLC, Rental Car Finance Corp., DNRS II LLC, HFLF, Donlen Trust and various international subsidiaries that facilitate the Company's international securitizations) are available to satisfy the claims of general creditors.

Some of these special purpose entities are consolidated variable interest entities, of which the Company is the primary beneficiary, whose sole purpose is to provide commitments to lend in various currencies subject to borrowing bases comprised of rental vehicles and related assets of certain of Hertz International, Ltd.'s subsidiaries. As of March 31, 2016 and December 31, 2015, the Company's International Fleet Financing No. 1 B.V., International Fleet Financing No. 2 B.V. and HA Funding Pty, Ltd. variable interest entities had total assets of $400 million and $418 million, respectively, primarily comprised of loans receivable and revenue earning equipment, and total liabilities of $400 million and $418 million, respectively, primarily comprised of debt.

Financial Covenant Compliance

Under the terms of the Senior Term Facility and Senior ABL Facility, the Company is not subject to ongoing financial maintenance covenants; however, under the Senior ABL Facility, failure to maintain certain levels of liquidity will subject the Company to a contractually specified fixed charge coverage ratio of not less than 1:1 for the four quarters most recently ended. As of March 31, 2016, the Company was not subject to the fixed charge coverage ratio test.