What was the total debt for Dollar Rent A Car as of December 31, 2024?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------------------------------------------|------------------------------------------|----------|----------------------|----------------------| | Non-Vehicle Debt | | | | | | | First Lien RCF | 8.17% | Floating | 6/2026 | $ 175 | $ — | | Term B Loan | 8.18% | Floating | 6/2028 | 1,255 | 1,268 |
(2) As of December 31, 2024 and 2023, $2.2 billion was recorded in the Company's Americas RAC segment and $600 million in the Company's International RAC segment.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
| Facility | Weighted Average Interest Rate as of December 31, 2024 | Fixed or Floating Interest Rate | Maturity | December 31, 2024 | December 31, 2023 |
|---|---|---|---|---|---|
| Incremental Term B Loan | 8.29% | Floating | 6/2028 | 495 | 500 |
| Term C Loan | 8.18% | Floating | 6/2028 | 245 | 245 |
| First Lien Senior Notes(1) | 12.63% | Fixed | 7/2029 | 1,250 | — |
| Exchangeable Notes(2) | 8.00% | Fixed | 7/2029 | 250 | — |
| Senior Notes Due 2026 | 4.63% | Fixed | 12/2026 | 500 | 500 |
| Senior Notes Due 2029 | 5.00% | Fixed | 12/2029 | 1,000 | 1,000 |
| Other Non-Vehicle Debt(3) | 15.76% | Fixed | Various | — | 2 |
| Unamortized Debt Issuance Costs | (66) | (66) | |||
| and Net (Discount) Premium(4) | |||||
| Total Non-Vehicle Debt | 5,104 | 3,449 | |||
| Vehicle Debt | |||||
| HVF III U.S. ABS Program | |||||
| HVF III U.S. Vehicle Variable Funding Notes | |||||
| HVF III Series 2021-A Class A(5) | 6.11% | Floating | 4/2026 | 2,162 | 1,492 |
| HVF III Series 2021-A Class B(5) | 9.44% | Fixed | 8/2025 | 188 2,350 | 188 1,680 |
| HVF III U.S. Vehicle Medium Term Notes | |||||
| HVF III Series 2021-1(5) | N/A | Fixed | 12/2024 | — | 2,000 |
| HVF III Series 2021-2(5) | 2.12% | Fixed | 12/2026 | 2,000 | 2,000 |
| HVF III Series 2022-1(5) | 2.44% | Fixed | 6/2025 | 750 | 750 |
| HVF III Series 2022-2(5) | 2.78% | Fixed | 6/2027 | 750 | 750 |
| HVF III Series 2022-3(5) | N/A | Fixed | 3/2024 | — | 192 |
| HVF III Series 2022-4(5) | 4.22% | Fixed | 9/2025 | 667 | 667 |
| HVF III Series 2022-5(5) | 4.39% | Fixed | 9/2027 | 364 | 364 |
| HVF III Series 2023-1(5) | 6.17% | Fixed | 6/2026 | 500 | 500 |
| HVF III Series 2023-2(5) | 6.30% | Fixed | 9/2028 | 300 | 300 |
| HVF III Series 2023-3(5) | 6.46% | Fixed | 2/2027 | 500 | 500 |
| HVF III Series 2023-4(5) | 6.66% | Fixed | 3/2029 | 500 | 500 |
| HVF III Series 2024-1(5) | 5.98% | Fixed | 1/2028 | 375 | — |
| HVF III Series 2024-2(5) | 6.03% | Fixed | 1/2030 | 375 7,081 | — 8,523 |
| Vehicle Debt - Other | |||||
| European ABS(5) | 4.71% | Floating | 3/2026 | 1 |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the total debt for the company as of December 31, 2024, was $16,335 million. In comparison, the total debt as of December 31, 2023, was $15,691 million.
This substantial debt load is comprised of both non-vehicle and vehicle debt. The non-vehicle debt totaled $5,104 million as of December 31, 2024, and $3,449 million as of December 31, 2023. The vehicle debt was significantly higher, amounting to $11,231 million as of December 31, 2024, and $12,242 million as of December 31, 2023. These figures include various loans, notes, and securitization programs, each with its own interest rate and maturity date.
The debt structure includes various facilities such as the Incremental Term B Loan, Term C Loan, First Lien Senior Notes, Exchangeable Notes, and Senior Notes due in 2026 and 2029. These debts carry different interest rates, some fixed and some floating, impacting the overall financial obligations of Dollar Rent A Car. For example, the First Lien Senior Notes have a fixed interest rate of 12.63%, while the Incremental Term B Loan has a floating rate of 8.29% as of December 31, 2024.
For a prospective franchisee, this level of debt indicates the financial obligations and capital structure of Dollar Rent A Car's parent company, Hertz. While the debt is not directly the franchisee's responsibility, it reflects the financial health and stability of the overall organization. Franchisees should consider these figures as part of their due diligence to understand the financial context of the franchise system.