Thrifty Car Rental 2010 Annual Report Download - page 71

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10. DEBT AND OTHER OBLIGATIONS
Debt and other obligations consist of the following:
2010 2009
Vehicle debt and other obligations
Asset-backed medium-term notes
Series 2007-1 notes (matures July 2012) 500,000$ 500,000$
Series 2006-1 notes (matures May 2011) 500,000 600,000
Series 2005-1 notes (matured June 2010) - 400,000
1,000,000 1,500,000
Discounts on asset-backed medium-term notes - (5)
Asset-backed medium-term notes, net of discount 1,000,000 1,499,995
Series 2010-1 variable funding note (matures September 2012) 200,000 -
CAD Series 2010-1 note (Canadian fleet financing) 49,118 -
Limited partner interest in limited partnership (Canadian fleet financing) - 69,690
Total vehicle debt and other obligations 1,249,118 1,569,685
Non-vehicle debt
Term Loan 148,125 158,125
Total non-vehicle debt 148,125 158,125
Total debt and other obligations 1,397,243$ 1,727,810$
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 “Series 2007-1 notes”), March 2006 (the “Series 2006-
1 notes”) and April 2005 (the “Series 2005-1 notes”).
The Series 2007-1 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 Series 2007-1 notes begin scheduled amortization in February 2012 and will
amortize over a six-month period.
The Series 2006-1 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. In December 2010, the Series 2006-1 notes began scheduled amortization and will
amortize at $100 million per month through May 2011.
The Series 2005-1 notes were paid in full during 2010.
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.
The Series 2006-1 notes and the Series 2007-1 notes are insured by Ambac Assurance
Corporation (“AMBAC”) and Financial Guaranty Insurance Company (“FGIC”), respectively.
The scheduled amortization periods for the Series 2006-1 notes and Series 2007-1 notes may
be accelerated under certain circumstances, including an Event of Bankruptcy with respect to
the applicable monoline or bond insurer (each, a “Monoline”). An event of bankruptcy involving
a Monoline could trigger an early amortization of the Company’s obligations under the affected
medium-term notes, which would require a more rapid repayment of those notes. During an
early amortization period, amortization is required at the earliest of (i) the sale of the vehicle
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