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Debt | 6 Months Ended
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Jun. 30, 2017
Debt Disclosure [Abstract] |
Debt | Debt The Company's debt consists of the following (in millions):
|  | Weighted Average Effective Interest Rate at June 30, 2017 |  | Weighted Average Stated Interest Rate at June 30, 2017 |  | Fixed or Floating Interest Rate |  | Maturity |  | June 30, 2017 |  | December 31, 2016
Senior Secured Second Priority Notes |  |  |  |  |  |  |  |  |  |  |  |
2022 Notes |  | 7.88% |  | 7.50% |  | Fixed |  | 2022 |  | $ | 549.0 |  |  | $ | 610.0 |
2024 Notes |  | 8.06% |  | 7.75% |  | Fixed |  | 2024 |  | 562.5 |  |  | 625.0 |
Other Debt |  |  |  |  |  |  |  |  |  |  |  |
ABL Credit Facility |  | N/A |  | 2.95% |  | Floating |  | 2021 |  | 1,005.0 |  |  | 910.0 |
Capital leases |  | 4.00% |  | N/A |  | Fixed |  | 2016-2021 |  | 62.1 |  |  | 70.3 |
Other borrowings |  | N/A |  | 4.79% |  | Floating |  | 2018 |  | 0.5 |  |  | — |
Unamortized Debt Issuance Costs(a) |  |  |  |  |  |  |  |  |  | (17.7 | ) |  | (21.0 | )
Total debt |  |  |  |  |  |  |  |  |  | 2,161.4 |  |  | 2,194.3 |
Less: Current maturities of long-term debt |  |  |  |  |  |  |  |  |  | (16.0 | ) |  | (15.7 | )
Long-term debt, net |  |  |  |  |  |  |  |  |  | $ | 2,145.4 |  |  | $ | 2,178.6 |
(a) | Unamortized debt issuance costs totaling $15.2 million and $17.1 million related to the ABL Credit Facility (as defined below) are included in "Other long-term assets" in the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016, respectively.
The effective interest rates for the fixed rate 2022 Notes and 2024 Notes (as defined below) include the stated interest on the notes and the amortization of any debt issuance costs. Senior Secured Second Priority Notes In June 2016, Herc issued $610.0 million aggregate principal amount of 7.50% senior secured second priority notes due 2022 (the "2022 Notes") and $625.0 million aggregate principal amount of 7.75% senior secured second priority notes due 2024 (the "2024 Notes" and, together with the 2022 Notes, the "Notes"). Interest on the 2022 Notes accrues at the rate of 7.50% per annum and is payable semi-annually in arrears on June 1 and December 1. The 2022 Notes mature on June 1, 2022. Interest on the 2024 Notes accrues at the rate of 7.75% per annum and is payable semi-annually in arrears on June 1 and December 1. The 2024 Notes mature on June 1, 2024. On March 10, 2017 Herc drew down on its ABL Credit Facility (as defined below) and redeemed $61.0 million in aggregate principal amount of the 2022 Notes and $62.5 million in aggregate principal amount of the 2024 Notes and recorded a $5.8 million loss on the early extinguishment of debt, comprised of a 3% cash premium totaling $3.7 million and a non-cash charge of $2.1 million for the write-off of unamortized debt issuance costs. The loss on early extinguishment of debt is included in "Interest expense, net” in the Company's condensed consolidated statement of operations. ABL Credit Facility The Company's asset-based revolving credit agreement, executed by its Herc subsidiary, provides for senior secured revolving loans up to a maximum aggregate principal amount of $1,750 million (subject to availability under a borrowing base), including revolving loans in an aggregate principal amount of $350 million available to Canadian borrowers and U.S. borrowers (the "ABL Credit Facility"). Up to $250 million of the revolving loan facility is available for the issuance of letters of credit, subject to certain conditions including issuing lender participation. Extensions of credit under the ABL Credit Facility are limited by a borrowing base calculated periodically based on specified percentages of the value of eligible rental equipment, eligible service vehicles, eligible spare parts and merchandise, eligible accounts receivable, and eligible unbilled accounts subject to certain reserves and other adjustments. Subject to the satisfaction of certain conditions and limitations, the ABL Credit Facility allows for the addition of incremental revolving and/or term loan commitments. In addition, the ABL Credit Facility permits Herc to increase the amount of commitments under the ABL Credit Facility with the consent of each lender providing an additional commitment, subject to satisfaction of certain conditions. The ABL Credit Facility matures on June 30, 2021. The interest rates applicable to the loans under the ABL Credit Facility are based on a fluctuating rate of interest measured by reference to either, at the borrowers’ option, (i) an adjusted London inter-bank offered rate, plus a borrowing margin or (ii) an alternate base rate, plus a borrowing margin (or, in the case of the Canadian borrowers, a rate equal to the rate on bankers’ acceptances with the same maturity, plus a borrowing margin). The borrowing margin on the ABL Credit Facility is determined based on a pricing grid that is bifurcated based on corporate credit ratings, with levels within the grid based on available commitments. Customary fees are also payable in respect of the ABL Credit Facility, including a commitment fee on the unutilized portion thereof. Other Borrowings In June 2017, the Company's subsidiary in China entered into uncommitted credit agreements with a bank for up to the maximum aggregate principal amount of $10.0 million. Interest accrues on the loans drawn under these facilities at a rate of 110% of the prevailing base lending rates published by People's Bank of China and is payable quarterly. As of June 30, 2017, the Company had short-term borrowings under these facilities totaling $0.5 million. Covenants Notes The indenture governing the Notes contains covenants that, among other things, limit the ability of Herc to incur additional indebtedness, guarantee indebtedness or issue certain preferred shares; pay dividends on, redeem or repurchase stock or make other distributions in respect of its capital stock; repurchase, prepay or redeem subordinated indebtedness; make loans and investments; create liens; transfer or sell assets; consolidate, merge or sell or otherwise dispose of all or substantially all of its assets; enter into certain transactions with affiliates; and designate subsidiaries as unrestricted subsidiaries. ABL Credit Facility The ABL Credit Facility contains a number of negative covenants that, among other things, limit or restrict the ability of the borrowers and, in certain cases, their restricted subsidiaries to dispose of assets, incur additional indebtedness, incur guarantee obligations, prepay certain indebtedness, make certain dividends, create liens, make investments, make acquisitions, engage in mergers, change the nature of their business, engage in certain transactions with affiliates and enter into certain restrictive agreements. Failure to maintain certain levels of liquidity will subject the Herc credit group to a contractually specified fixed charge coverage ratio of not less than 1:1 for the four quarters most recently ended. As of June 30, 2017, the Company was not subject to the fixed charge coverage ratio test. Covenants in the ABL Credit Facility restrict payment of cash dividends to any parent of Herc, including Herc Holdings, except in an aggregate amount, taken together with certain investments, acquisitions and optional prepayments, not to exceed $200 million. Herc may also pay additional cash dividends under the ABL Credit Facility under certain circumstances. The ABL Credit Facility also contains certain affirmative covenants, including financial and other reporting requirements. Borrowing Capacity and Availability After outstanding borrowings, the following was available to the Company under the ABL Credit Facility as of June 30, 2017 (in millions):
| Remaining Capacity |  | Availability Under Borrowing Base Limitation
ABL Credit Facility | $ | 720.5 |  |  | $ | 720.5 |
In addition, as of June 30, 2017, the Company's subsidiary in China had uncommitted credit facilities of which $9.5 million was unutilized. Letters of Credit As of June 30, 2017, the ABL Credit Facility had $225.5 million available under the letter of credit facility sublimit, subject to borrowing base restrictions, as $24.5 million of standby letters of credit were issued and outstanding, none of which have been drawn upon.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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