Daily News: February 21, 2012

Dollar Thrifty Completes $450 Million Credit Facility

Dollar Thrifty Automotive Group, Inc. announced 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.

The new senior secured credit facility increases the company’s 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. In this regard, 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.

“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,” said Scott L. Thompson, president and CEO. “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.”

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

Through its Dollar Rent A Car and Thrifty Car Rental brands, the company has been serving value-conscious leisure and business travelers since 1950.

Previously on abfjournal.com:

Dollar Thrifty Automotive Group Amends Credit Facility, Monday, September 26, 2011

Dollar Thrifty Automotive Amends Facility With Deutsche Bank, Thursday, February 10, 2011