Dollar Thrifty Completes $200 Million Asset-Backed Financing

Dollar Thrifty Automotive Group Inc. announced April 9 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 percent. 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."

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Understanding The Fleetification of Everything

As fleet miles increase exponentially, and as new stratum of fleet enter both consumer and business use cases, the "founding fathers" who gathered at Fleet Forward in Miami last week have some work to do.

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Job Finder: Access Top Talent. Fill Key Positions.

>