Zipcar has renewed its ABS program led by Credit Agricole Corporate & Investment Bank (Credit Agricole CIB).
The renewed facility offers an aggregate of $50 million in variable funding to support Zipcar's growing global fleet of over 8,000 vehicles.
The one-year renewal provides terms more favorable than the original agreement — first announced in May 2010 — in key areas such as interest rate, fee on undrawn funds and collateralization levels.
"The renewal of our ABS facility on more attractive terms reflects both improvements in the credit markets as well as in our own financial condition," said Zipcar CFO Ed Goldfinger. "Achieving lower cost of vehicle funding is an important driver in our business and we were pleased to work with Credit Agricole CIB to produce this positive outcome."
"Credit Agricole CIB is pleased to enter into this extension for an additional year of its fleet securitization for Zipcar," said Sam Pilcer, a managing director at Credit Agricole CIB. "The relationship has been a positive for both parties since it started in 2010 and terms of the extension continue to allow financing that is responsive and economic to Zipcar's fleet needs."