Dollar Thrifty Completes $300 Million Asset-Backed Financing

Dollar Thrifty Automotive Group Inc. announced June 18 that its Rental Car Finance Corp. subsidiary completed a private note placement that will provide an extra $300 million of additional fleet financing.

Scheduled amortization payments begin 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. The notes have an advance rate of approximately 65 percent.  

"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."  

Dollar Thrifty 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.

Thompson said the company plans to complete an additional $300 million of fleet financing during the fourth quarter of 2010, which will provide adequate replacement financing for the Series 2006-1 notes.

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