Dollar Thrifty Completes $200 million Asset-Backed Notes

Dollar Thrifty Automotive Group executives announced that their Rental Car Finance Corp. subsidiary has completed $200 million in asset-backed notes. The financing has scheduled amortization payments due starting April 2012 for 6 months.

Dominion Bond Rating Service Inc. has rated the variable funding notes AA with a 65% rate of advance. They bear interest at a 275 basis point spread above the weighted average commercial paper rate, say officials. They also said that there were no up-front fees with the transaction.

Scott L. Thompson, the president and chief executive officer of Dollar Thrifty, said that they are very happy with this financing, as it provides them with the right capacity to take car of expected purchases within their fleet at a rate that’s less than those payable on their existing medium-term notes. This also confirms that Dollar Thrift is able to access vehicle financing again at enhanced levels and competitive rates, he added, as well as highlights their plan to lower the overall interest of their fleet consistent with their focus on return assets.

Dollar Thrifty also commented that they repaid $200 million in notes as of March 31. The remaining $200 million in outstanding financing will be amortized through June this year. Their next scheduled fleet debt maturity will begin in December this year, when they will have paid another $600 million in notes that will begin amortizing in May next year for 6 months. There are no significant corporate debt maturities until June of 2013, which is when their existing Senior Secured Term Loan is due.

On Friday, Dollar Thrifty’s shares hit a high for the last 52 weeks to $36.30. However, this was before it declined slightly to close up 0.67% to $36.21.