Dollar Thrifty Reveals Pricing of $500M Asset-Backed Notes
Dollar Thrifty Automotive Group announced late last week that one of its subsidiaries has priced a group of rental car asset-backed notes to raise more capital.
Oklahoma based Rental Car Finance Corp. priced $500 million in aggregate principal amount of medium-term Series 2011-1 rental car asset-backed notes.
Company officials state that the notes will be issued in two separate classes, with senior Class A notes and subordinated Class B notes.
The $420 million of Class A notes were priced with an annual coupon of 2.51 percent, and the $80 million of Class B notes were priced with an annual coupon of 4.38 percent.
On a blended basis, the average annual coupon on the combined $500 million principal amount of notes is approximately 2.81 percent.
The Class B Notes will be subordinated to the Class A notes, and both series of notes will have expected final payment dates in February 2015, company officials noted.
Moreover, following the closing of the transaction, the net proceeds from the sale of the Series 2011-1 notes will be applied to refinance vehicles from one or more of Rental Car Finance Corp.’s outstanding series of variable funding notes, which will reduce borrowings outstanding under those facilities.
According to company officials, the offering is expected to close on July 28, 2011, subject to normal closing conditions.