Thrifty Car Rental 2009 Annual Report Download - page 69

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Additionally, during 2009, the Company amended its Senior Secured Credit Facilities, whereby the
Company may not increase the available amount of the letters of credit issued as enhancement for
the Company’s 2005 Series notes at any time prior to the occurrence of an event of bankruptcy with
respect to a Monoline under the 2005 Series notes if, at the time, the 2005 Series notes letter of
credit amount is greater than $24.4 million or if the requested increase would cause the Series
2005-1 letter of credit amount to exceed that amount, and whereby letters of credit to be issued as
enhancement for future fleet financing will be limited to a maximum of 7% of the initial face amount
of each series of asset backed medium term notes issued, up to the existing sub-limit under the
facility of $100 million. This amendment does not apply to, nor have any impact on, the Company’s
existing medium term notes and enhancement letters of credit.
During 2009, the Company paid $6.6 million in financing issue costs primarily related to various
amendments of its asset backed medium term notes and Senior Secured Credit Facilities.
Expected maturities of debt and other obligations outstanding at December 31, 2009 are as follows:
2010 2011 2012 2013 2014 Thereafte
r
Asset backed medium term notes 500,000$ 500,000$ 500,000$ -$ -$ -$
69,690 - - - - -
Term Loan 10,000 10,000 10,000 128,125 - -
Total 579,690$ 510,000$ 510,000$ 128,125$ -$ -$
(In Thousands)
Limited partner interest (CAD fleet
financing)
11. DERIVATIVE FINANCIAL INSTRUMENTS
The Company is exposed to market risks, such as changes in interest rates. Consequently, the
Company manages the financial exposure as part of its risk management program, by striving to
reduce the potentially adverse effects that the volatility of the financial markets may have on the
Company’s operating results. The Company has used interest rate swap agreements, for each
related new asset backed medium term note issuance in 2005 through 2007, to effectively convert
variable interest rates on a total of $1.4 billion in asset backed medium term notes to fixed interest
rates. These swaps have termination dates through July 2012. The fair value of derivatives
outstanding for the years ended December 31, 2009 and 2008 are as follows (in thousands):
Balance
Sheet
Location Fair Value
Balance
Sheet
Location Fair Value
Balance
Sheet
Location Fair Value
Balance
Sheet
Location Fair Value
Accrued Accrued
Interest rate contracts Receivables -$ Receivables -$ liabilities 40,639$ liabilities 56,069$
-$ -$ 40,639$ 56,069$
Accrued Accrued
Interest rate contracts Receivables 16$ Receivables 63$ liabilities 34,732$ liabilities 63,564$
16$ 63$ 34,732$ 63,564$
Total derivatives 16$ 63$ 75,371$ 119,633$
Fair Values of Derivative Instruments
Asset Derivatives Liability Derivatives
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
Derivatives designated as hedging
instruments
Total derivatives designated as hedging
instruments
Derivatives not designated as hedging
instruments
Total derivatives not designated as hedging
instruments
68