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 2010-3. When fully funded, the notes will provide $450 million of additional financing. The revolving period for the notes ends in October 2011, with scheduled amortization payments due over a six-month period beginning in November 2011 and ending 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 125 basis points above each purchasing conduit’s weighted average commercial paper rate when drawn.
“During 2010, we have completed three fleet financing transactions totaling $950 million, providing significant financial flexibility in advance of future debt maturities,” said Scott L. Thompson, President and Chief Executive Officer. “We are pleased with our access to the market at competitive interest rates and enhancement levels.”
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.
The Series 2010-3 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 2010-3 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.