Dollar Rent A Car 2011 Annual Report Download - page 68

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8. DEBT AND OTHER OBLIGATIONS
Debt and other obligations consist of the following:
December 31,
2011 2010
(In Thousands)
Vehicle debt and other obligations

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
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.
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