Financing Obligations

9 Months Ended

Sep. 30, 2019

In October 2017, Herc consummated a sale-leaseback transaction pursuant to which it sold 42 of its properties located in the U.S. for gross proceeds of approximately $119.5 million, and during the fourth quarter of 2018, entered into sale-leaseback transactions with respect to two additional properties for gross proceeds of $6.4 million. Herc entered into a master lease agreement pursuant to which it has continued operations at those properties as a tenant. The triple net lease agreement has an initial term of 20 years, subject to extension, at Herc's option, for up to five additional periods of five years each. The sale of the properties did not qualify for sale-leaseback accounting due to continuing involvement with the properties. Therefore, the book value of the buildings and land remains on the Company's consolidated balance sheet.

During March 2019, Herc entered into a sale-leaseback transaction for certain service vehicles that did not qualify for sale-leaseback accounting, therefore the book value of the vehicles remains on the Company's consolidated balance sheet. Gross proceeds from the sale-leaseback transaction were $4.7 million.

The Company's financing obligations consist of the following (in millions):



	Weighted Average Effective Interest Rate at September 30, 2019	Maturities	September 30, 2019			December 31, 2018
Financing obligations	4.89%	2026-2038	$	124.2		$	122.1
Unamortized financing issuance costs			(2.6		)	(2.8		)
Total financing obligations			121.6			119.3
Less: Current maturities of financing obligations			(3.4		)	(3.0		)
Financing obligations, net			$	118.2		$	116.3