Dollar Thrifty Automotive Group (DTAG) is in the market with a transaction called Rental Car Finance Corp., Asset Backed Notes, Series 2011-1. Rental Car Finance Corp. (RCFC), a wholly owned subsidiary of Dollar Thrifty, is the issuer.
Joint lead managers on the offering are Deutsche Bank Securities and JPMorgan Securities. Co-managers on the 14AA offering are Royal Bank of Scotland and Scotia Capital.
The deal comprises a $336 million Class A tranche 'Aaa' rated by Moody's Investors Service tranche and a $64 million Class B portion rated 'Baa2'.
The Class A and B notes will have an expected maturity of around three years. The Class B notes are subordinated to the Class A notes.
The deal is backed by a segregated pool of vehicles that make up a part of RCFC’s fleet. The Group VIII vehicles are leased by RCFC to DTG Operations, a wholly-owned operating subsidiary of DTAG, through a master lease for use in its car rental operations.
The proceeds of deal will be used to refinance existing variable funding notes issued in 2010 and to buy eligible vehicles from eligible manufacturers for lease under the Group VIII lease to DTG as lessee.