Thrifty Car Rental 2010 Annual Report Download - page 73

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principal amount of the Series 2010-2 VFN will be repaid monthly over a six-month period,
beginning in July 2013, with the final payment in December 2013. The Series 2010-2 VFN
bears interest at a spread of 375 basis points above one-month LIBOR when drawn. The
Series 2010-2 VFN has a facility fee commitment rate of up to 1.5% per annum on any unused
portion of the facility. In connection with this financing, RCFC entered into an interest rate cap
agreement for a term of 42 months with a notional amount of $300 million to effectively limit the
Series 2010-2 VFN’s floating rate to a maximum of 5%.
In October 2010, RCFC completed a $450 million asset-backed variable funding note program
(the “Series 2010-3 VFN”), which may be drawn and repaid from time to time in whole or in part
at any time during the Series 2010-3 VFN’s one-year revolving period. The Series 2010-3 VFN
was undrawn at December 31, 2010. At the end of the revolving period, the then-outstanding
principal amount of the Series 2010-3 VFN will be repaid monthly over a six-month period,
beginning in November 2011, with the final payment in April 2012. The Series 2010-3 VFN
bears interest at a spread of 125 basis points above the weighted-average commercial paper
rate offered by the commercial paper conduit purchaser or purchasers from time to time funding
advances under the Series 2010-3 VFN, or at 325 basis points over the affiliated bank’s base
rate or a Eurodollar rate in the event that the conduit purchaser is not at such time funding
amounts outstanding under the Series 2010-3 VFN. The Series 2010-3 VFN has a facility fee
commitment rate of up to 0.8% per annum on any unused portion of the facility. In connection
with this financing, RCFC entered into an interest rate cap agreement for a term of 25 months
with a notional amount of $450 million to effectively limit the Series 2010-3 VFN’s floating rate
to a maximum of 5%.
See Note 19 for discussion of the amendments to the asset-backed variable funding note
programs that significantly revised applicable restrictions and covenants effective February 23,
2011.
Canadian Fleet Financing – DTG Canada had a partnership agreement (the “Partnership
Agreement”) with an unrelated bank’s conduit. This transaction included the creation of a
limited partnership to facilitate financing of Canadian vehicles. The Partnership Agreement of
the Partnership expired on May 31, 2010.
In May 2010, the Company completed a new CAD $150 million Canadian fleet securitization
program (“CAD Series 2010 Program”). This CAD Series 2010 Program has a term of one year
and requires a program fee of 225 basis points above the weighted-average commercial paper
rate offered by the purchaser or purchasers and a utilization fee of 100 basis points on the
unused program amount. In connection with the CAD Series 2010 Program, the Company paid
off the remaining outstanding principal balance under the limited partner interest in limited
partnership. At December 31, 2010, DTG Canada had approximately CAD $49.0 million (US
$49.1 million) funded under this program. The CAD Series 2010 Program had an interest rate
of 3.43% at December 31, 2010.
Senior Secured Credit Facilities – At December 31, 2010, the Company’s senior secured
credit facilities (the “Senior Secured Credit Facilities”) were comprised of a $231.3 million
revolving credit facility (the “Revolving Credit Facility”) and a $148.1 million term loan (the
“Term Loan”), both of which expire on June 15, 2013. The Senior Secured Credit Facilities
contain certain financial and other covenants and are collateralized by a first priority lien on
substantially all material non-vehicle assets and certain vehicle assets not pledged as collateral
under a vehicle financing facility. The Term Loan bears interest at LIBOR plus 2.5% which was
2.76% and 2.73% at December 31, 2010 and 2009, respectively. As of December 31, 2010,
the Company is in compliance with all covenants.
The Revolving Credit Facility has a capacity of $231.3 million, expires on June 15, 2013, and
was restricted to use for letters of credit at December 31, 2010. The Company had letters of
credit outstanding under the Revolving Credit Facility of $39.8 million for U.S. enhancement,
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