Fox Rent-A-Car arranges $325 million credit facility, $20 million loan

By Toni Weeks

San Luis Obispo, Calif., Dec. 2 – Fox Rent-A-Car said it completed a new four-year $325 million senior credit facility on Tuesday led by Bank of America Merrill Lynch.

The company also arranged a subordinated loan of $20 million with Harvest Capital.

Proceeds will be used to retire existing debt and provide working capital.

“The new credit agreement provides a flexible, longer-term capital structure to support the company’s strategic plan, including expansion into key markets, continued investments in proprietary technology and optimizing operations,” chief financial officer Richard Wolff said in a press release.

“Additionally, the recapitalization of the company will lead to millions of dollars of annual savings comprised of interest and other operating efficiencies.”

The car rental agency is based in Los Angeles.

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