TULSA, Okla. -

Dollar Thrifty Automotive Group revealed late last week the completion of a new five-year $450 million senior secured credit facility that “significantly enhances the company’s liquidity, as well as its operating and financing flexibility,” according to officials.

Commenting on the news, Scott Thompson, president and chief executive officer, said, "The completion of this new facility marks the final step in restructuring the company’s financing facilities on more favorable terms while also significantly extending maturity dates. We greatly appreciate the support of our lending group and are very pleased with the outcome of the credit facility renewal.

“The company has a substantial cash position, no corporate leverage and continues to generate significant operating cash flow. Those attributes, combined with a senior secured credit facility that provides the company with increased operational and financial flexibility, will allow us to continue in our quest to maximize profitability and shareholder value,” he continued.

And delving further into the new credit facility, officials explained that it increases the  available revolving credit capacity by approximately $220 million, compared to the company’s previous facility, and extends the maturity date to 2017 from 2013. 

“In addition to incremental financing capacity available for general corporate purposes or the issuance of letters of credit, the new facility provides the company with greatly improved flexibility to manage growth initiatives and capital structure initiatives,” officials further stressed.

Moreover, the new facility provides for restricted payments for the purposes of making share repurchases and/or paying dividends, provides greater flexibility for completion of acquisitions and permits the incurrence of additional indebtedness by the company. 

Pricing under the new senior secured credit facility is grid based with a spread above LIBOR that will range from 300 basis points to 350 basis points, based upon availability under the facility, the company shared.

Commitment fees under the new facility will equal 50 basis points on unused capacity. 

The new facility contains various financial and other covenants, including, among others, limitations on liens, investments, restricted payments and the incurrence of debt, as well as requirements to maintain a minimum interest coverage ratio, minimum Corporate Adjusted EBITDA and a maximum leverage ratio, officials concluded.