Thrifty Car Rental 2011 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2011 Thrifty Car Rental annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

8. DEBT AND OTHER OBLIGATIONS
Debt and other obligations consist of the following:
2011 2010
V
ehicle debt and other obligations
Asset-backed medium-term notes
Series 2011-2 notes (matures May 2015) 400,000$ -$
Series 2011-1 notes (matures February 2015) 500,000 -
Series 2007-1 notes (matures July 2012) 500,000 500,000
Series 2006-1 notes (matured May 2011) - 500,000
1,400,000 1,000,000
Discounts on asset-backed medium-term notes (45) -
Asset-backed medium-term notes, net of discount 1,399,955 1,000,000
Series 2010-1 variable funding note (terminated October 2011) - 200,000
CAD Series 2010-1 note (Canadian fleet financing) (terminated April 2011) - 49,118
Total vehicle debt and other obligations 1,399,955 1,249,118
Non-vehicle debt
Term Loan - 148,125
Total non-vehicle debt - 148,125
Total debt and other obligations 1,399,955$ 1,397,243$
December 31,
(In Thousands)
Asset-Backed Medium-Term Notes
Asset-backed medium-term notes were issued by RCFC in October 2011 (the “Series 2011-2
notes”), July 2011 (the “Series 2011-1 notes”), May 2007 (the “Series 2007-1 notes”) and
March 2006 (the “Series 2006-1 notes”).
The Series 2011-2 notes of $400 million were issued at a fixed interest rate of 3.21% and will
be repaid monthly over a six-month period, beginning in December 2014, with an expected final
maturity date of May 2015. At December 31, 2011, the Series 2011-2 notes required
compliance with a maximum leverage ratio of 2.25 to 1.00 and a minimum interest coverage
ratio of 2.00 to 1.00, consistent with the terms of the Company’s Senior Secured Credit
Facilities. These financial covenants were modified in connection with the Company’s entry
into the New Revolving Credit Facility. See below for further discussion.
The Series 2011-1 notes are comprised of $420 million principal amount of Series 2011-1
Class A Notes with a fixed interest rate of 2.51% and $80 million principal amount of Series
2011-1 Class B Notes with a fixed interest rate of 4.38%. On a blended basis, the average
annual coupon on the combined $500 million principal amount of the Series 2011-1 notes is
approximately 2.81%. The Series 2011-1 notes will be repaid monthly over a six-month period,
beginning in September 2014, with an expected final maturity date in February 2015.
The Series 2007-1 notes will begin scheduled amortization in February 2012, and will amortize
over a six-month period with an expected final maturity date in July 2012. The Series 2007-1
notes are insured by Financial Guaranty Insurance Company (“FGIC”). The Series 2007-1
notes are floating rate notes that were previously effectively converted to fixed rate notes
through entry into swap agreements. At December 31, 2011, the Series 2007-1 notes had an
interest rate of 0.4%. On December 28, 2011, the Company paid $8.8 million to terminate its
2007 swap agreements.
The Series 2006-1 notes began scheduled amortization in December 2010 and were paid in full
in May 2011.