Dollar Thrifty Reports Debt Reduction
In an effort to de-leverage its balance sheet and to match its fleet financing capacity with fleet inventory levels appropriate for current and expected market conditions, the company has reduced excess borrowing capacity and given notice of termination on two fleet financing structures.
Dollar Thrifty Automotive Group Inc. announced March 23 that as part of the company's ongoing efforts to de-leverage its balance sheet and to match its fleet financing capacity with fleet inventory levels appropriate for current and expected market conditions, the company has reduced excess borrowing capacity and given notice of termination on two fleet financing structures.
On March 17, Rental Car Finance Corp. (RCFC), a special purpose financing subsidiary of the company, provided notice to the lenders under its asset-backed variable funding note purchase facility (the "conduit") requesting a reduction in commitments under the conduit from $215 million to $1 million. The reduction in commitments under this facility became effective on March 17. In addition, Dollar Thrifty Funding Corp. (DTFC), a special purpose financing subsidiary of the company, provided notice to the lenders under its commercial paper program (the "commercial paper program") and liquidity lending facility (the "liquidity facility") requesting a reduction in commitments under the commercial paper program and liquidity facility from $277.5 million to $1 million. The reduction in commitments became effective on March 20. RCFC and DTFC have requested termination of these facilities as soon as administratively feasible, and termination is expected to occur prior to the maturity of these facilities in May 2009. As previously reported, $493 million in borrowings under these facilities was repaid in February 2009 and no amounts have since been drawn.
"Over the course of the past 9 months, we have worked aggressively to right-size our fleet as it became clear we needed to moderate our leverage and fleet levels to reflect current market conditions. We have reduced total debt on our balance sheet by approximately $720 million, from $2.6 billion at the end of February 2008 to $1.88 billion at the end of February 2009, which is in line with our strategy," said Scott L. Thompson, president and chief executive officer.
More Rental Operations

Brazilian Executive MBA Targets Growing Domestic Rental Car Industry
Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.
Read More →
Green Motion Expands Into Japan With Master Franchise Agreement
Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.
Read More →
ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future
The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.
Read More →
World Cup Travel Data Shows Longer Car Rentals and More One-Ways
A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.
Read More →
A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker
Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.
Read More →Stop Losing Money On Rental Tolls
Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.
Read More →
Rethink The Future To Avert A Race To The Bottom
Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.
Read More →
DriveItAway, Free2move Plan Shared Fleet Program for Independent Rental Fleet Operators
Vehicles would be placed with participating rental operations to support car renter demand and provide additional fleet capacity.
Read More →
Stellantis Recalls 1.3 Million Jeep Vehicles Worldwide Over Fire Risk
Stellantis is recalling more than 1.3 million Jeep Wrangler and Gladiator models worldwide over a fire risk linked to power steering pump wiring.
Read More →
Green Motion And U-Save Open Rental Operations In Guatemala
The brands will open their first rental car outlets in the country at La Aurora International Airport in Guatemala City.
Read More →
