Dollar Thrifty Cuts Debt

Dollar Thrifty Automotive Group Inc. reduces borrowing capacity and gives notice of termination on two fleet financing structures.
Over the past nine months, DTG aggressively worked to right-size its fleet, cutting total debt on its balance sheet by about $720 million — down from $2.6 billion at the end of February 2008 to $1.88 billion at the end of February 2009, said Scott L. Thompson, president and chief executive.
“This in line with our strategy,” Thompson said.
On March 17, Rental Car Finance Corp., a special purpose financing subsidiary of the company, provided notice to the lenders under its asset-backed Variable Funding Note Purchase Facility requesting a reduction in commitments under the conduit from $215 million to $1 million.
The reduction in commitments under this facility became effective on March 17. In addition, Dollar Thrifty Funding Corp., a special purpose financing subsidiary of the company, provided notice to the lenders under its commercial paper program and liquidity lending facility requesting a reduction in commitments under the Commercial Paper Program and Liquidity Facility from $277.5 million to $1 million.
The reduction in commitments became effective on March 20. RCFC and DTFC have requested termination of these facilities as soon as administratively feasible, and termination is expected to occur prior to the maturity of these facilities in May.
As previously reported, $493 million in borrowings under these facilities was repaid in February.



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