Dollar Thrifty Automotive Group, Inc today announced that its Rental Car Finance Corp. subsidiary completed a $200 million issuance of Rental Car Asset Backed Variable Funding Notes, Series 2010-1, due September 2012, with scheduled amortization payments due over a six-month period beginning in April 2012. The notes are rated AA by Dominion Bond Rating Service, Inc. and have an advance rate of approximately 65%. The notes bear interest at a spread of 275 basis points above the purchasing conduit’s weighted average commercial paper rate, and there were no upfront fees associated with the transaction.
“We are very pleased with this financing transaction as it provides the Company with appropriate capacity for expected fleet purchases at a rate below those payable on our existing medium term notes,” said Scott L. Thompson, President and Chief Executive Officer. “It also confirms that the Company is again able to access vehicle financing at competitive rates and enhancement levels and highlights our plan to lower the overall interest carry cost of our fleet consistent with our focus on return on assets.”
The Company noted that, as of March 31, 2010, it has repaid $200 million of its Series 2005-1 Notes, and that the remaining $200 million outstanding under that series will be amortized through June 2010. The Company’s next scheduled fleet debt maturity begins in December 2010 when $600 million of its Series 2006-1 Notes begin amortizing over a six-month period ending in May 2011. The Company has no significant corporate debt maturities until June 2013 when the Company’s existing Senior Secured Term Loan comes due.
The Series 2010-1 Notes have not been, and will not be, registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is neither an offer to sell nor a solicitation of an offer to buy any of the Series 2010-1 Notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such offer, solicitation or sale is unlawful.