Dollar Thrifty Automotive amends, allowing for revolver borrowings

By Sara Rosenberg

New York, Feb. 10 - Dollar Thrifty Automotive Group Inc. amended its senior secured credit facility, restoring the company's ability to borrow under its $231.3 million revolver, according to a news release.

Also, previous limitations on the use of letters credit to meet credit enhancement requirements on fleet financing facilities have been removed.

In addition, the amendment removed the minimum tangible net worth and minimum cash covenants, and added a maximum leverage ratio of 2.25:1 and a minimum interest coverage ratio of at least 2.00:1.

The amendment also permits the company to complete certain franchise acquisitions, provides for new investment baskets for its vehicle financing subsidiary and Canadian subsidiary, and reinstated and revised the restricted payment basket to permit share repurchases and dividends.

Pricing and maturity dates were left unchanged.

Deutsche Bank is the administrative agent on the deal.

Dollar Thrifty is a Tulsa, Okla.-based renter and leaser of vehicles.

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