Dollar Thrifty Automotive Group, Inc. today announced that its Rental Car Finance Corp. subsidiary completed a private placement of Rental Car Asset Backed Variable Funding Notes, Series 2010-2. When fully funded, the notes will provide $300 million of additional fleet financing. The revolving period for the notes ends in June 2013, with scheduled amortization payments due over a six-month period beginning in July 2013 and ending in December 2013. The notes will bear interest at a spread of 375 basis points above the one-month LIBOR rate when drawn. The notes have an advance rate of approximately 65%.
“We have added $500 million of vehicle financing capacity during the first six months of 2010, demonstrating our ability to access the markets at competitive interest rates and enhancement levels,” said Scott L. Thompson, President and Chief Executive Officer. “This transaction provides the Company with additional long-term fleet financing capacity well in advance of our next scheduled fleet debt maturity, at a rate that is below the effective fixed rates of interest paid in respect of our existing medium term notes.”
The Company noted that its 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 also noted that it has no significant scheduled corporate debt maturities until June 2013, when borrowings under the Company’s existing Senior Secured Credit Facility come due and the Facility terminates.
“Subject to market conditions, we expect to complete an additional $300 million of fleet financing during the fourth quarter of 2010, which will, when combined with the availability under the new Series 2010-2 notes, provide adequate replacement financing for the Series 2006-1 notes,” said Thompson.
The Series 2010-2 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 2010-2 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.