TULSA, Okla. -

On the heels of declaring it is no longer up for sale, Dollar Thrifty Automotive Group announced Wednesday that its subsidiary Rental Car Finance Corp. completed the private placement of $400 million of Series 2011-2 asset backed medium-term notes. 

In connection with the placement, Rental Car Finance terminated the outstanding Series 2010-2 variable funding note facility, which officials noted has an available undrawn capacity of $300 million — with scheduled amortization payments beginning in July 2013 and an expected final maturity in December 2013. 

Commenting on the transaction, Scott Thompson, president and chief executive officer, noted,"We are very pleased with the successful completion of this transaction. It represents the final step in establishing a long-term fleet financing capital structure at very favorable rates of interest and advance rates.

"With the issuance of these notes, we have completed $1.5 billion of fleet financing in 2011 and have effectively pre-funded all of our upcoming debt maturities for 2012. Additionally, we have significantly extended our fleet financing maturities into 2013 and beyond," he further explained.

The company then went on to highlight the details of the recent transaction.

The newly purchased notes — which are not rated — bear interest at a fixed rate with an annual coupon of 3.21 percent. The notes’ amortization payments are scheduled to begin December 2014, with an expected final maturity of May 2015.

“No upfront fees were incurred in connection with the issuance of the notes and, because the Series 2011-2 notes were issued in replacement of the Series 2010-2 notes, no termination fees were incurred in conjunction with the termination of the Series 2010-2 notes,” officials stressed.

The company also noted that the advance rate on the new notes represented an increase to approximately 69 percent, up from approximately 65 percent on the terminated Series 2010-2 notes.

In other related news, earlier this month, Rental Car Finance also announced the termination of its $200 million Series 2010-1 variable funding note facility. 

These notes were undrawn at the time of termination and had scheduled amortization payments beginning in April of next year, with an expected final maturity in September 2012.

The company noted that it incurred a charge of approximately $2 million in conjunction with this early termination, primarily related to the write off of unamortized financing fees on the facility.