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."