Thrifty Car Rental 2009 Annual Report Download - page 66

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charge (pre-tax) related to the impairment of goodwill ($223.5 million after-tax) during the first
quarter of 2008, which represents the total accumulated impairment loss. The Company had no
goodwill on its balance sheet at December 31, 2009 or 2008.
10. DEBT AND OTHER OBLIGATIONS
Debt and other obligations consist of the following:
2009 2008
Vehicle debt and other obligations
Asset backed medium term notes
2007 Series notes (matures July 2012) 500,000$ 500,000$
2006 Series notes (matures May 2011) 600,000 600,000
2005 Series notes (matures June 2010) 400,000 400,000
1,500,000 1,500,000
Discounts on asset backed medium term notes (5) (14)
Asset backed medium term notes, net of discount 1,499,995 1,499,986
Conduit Facility - 215,000
Commercial paper (including draws on Liquidity Facility) - 274,901
Other vehicle debt - 233,698
Limited partner interest in limited partnership (Canadian fleet financing) 69,690 86,535
Total vehicle debt and other obligations 1,569,685 2,310,120
Non-vehicle debt
Term Loan 158,125 178,125
Total non-vehicle debt 158,125 178,125
Total debt and other obligations 1,727,810$ 2,488,245$
December 31,
(In Thousands)
Asset Backed Medium Term Notes are comprised of rental car asset backed medium term notes
issued by RCFC in May 2007 (the “2007 Series notes”), March 2006 (the “2006 Series notes”) and
April 2005 (the “2005 Series notes”).
The 2007 Series notes are floating rate notes that were converted to a fixed rate of 5.16% by
entering into interest rate swap agreements (Note 11) in conjunction with the issuance of the notes.
The 2006 Series notes are floating rate notes that were converted to a fixed rate of 5.27% by
entering into interest rate swap agreements (Note 11) in conjunction with the issuance of the notes.
The 2005 Series notes are comprised of $110.0 million 4.59% fixed rate notes and $290.0 million of
floating rate notes. In conjunction with the issuance of the 2005 Series notes, the Company also
entered into interest rate swap agreements (Note 11) to convert $190.0 million of the floating rate
debt to fixed rate debt at a 4.58% interest rate. Additionally, in December 2006, the Company
entered into an interest rate swap agreement to convert the remaining $100.0 million of the floating
rate debt to fixed rate debt at a 5.09% interest rate.
The assets of RCFC, including revenue-earning vehicles related to the asset backed medium term
notes, restricted cash and investments, and certain receivables related to revenue-earning vehicles
are available to satisfy the claims of its creditors. Dollar and Thrifty lease vehicles from RCFC under
the terms of a master lease and servicing agreement. The asset backed medium term note
indentures also provide for additional credit enhancement through over collateralization of the
vehicle fleet, cash or letters of credit and maintenance of a liquidity reserve. RCFC is in compliance
with the terms of the indentures.
Each of the asset backed medium term note programs have financial guarantee insurance
underwritten by a monoline or bond insurer (“Monoline”) and each contains a minimum net worth
condition and an interest coverage condition. The 2005 Series notes, the 2006 Series notes and the
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