Dollar Thrifty reports amending credit facility

Dollar Thrifty Automotive Group has reported amending its senior security credit and fleet financing agreements with lenders, including Chrysler Financial, and will no longer have to maintain the previously-required minimum leverage ratio.

The amended agreements went into effect on Thursday, and will mean that Dollar Thrifty will have to maintain $150 million minimum in adjusted tangible net worth and $100 million minimum in unrestricted cash and cash equivalents.

According to the company, this is seen as a resolution to the financial covenant compliance problem that was addressed over the short-term with other amendments during the past several months.

In regard to the senior secured credit facility, Dollar Thrifty said that it had prepaid $20 million of its outstanding term loan and reduced commitments on its total revolving credit facility to $231.3 million.

As with other rental car companies such as Hertz Global Holding and the Avis Budget Group, the Dollar Thrifty Automotive Group has experienced a sharp decline in rental demand and prices.

Shares in Dollar Thrifty fell by 10 percent in trading on the New York Stock Exchange, at 79 cents.

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