Franchising.com:

Dollar Thrifty Automotive Group, Inc. today announced that it has obtained approval from the rating agencies and the monoline insurers of its medium-term note (“MTN”) programs to eliminate the requirement that the Company maintain a specific percentage of the value of its vehicle inventory under manufacturer guaranteed repurchase or depreciation (“GDP”) programs.

Under the previous terms of the MTN programs, the Company was not permitted to have more than 75 percent of the net book value of its vehicle inventory comprised of non-program, or risk, vehicles. The Company will now be able to maintain a fleet comprised of 100 percent risk vehicles, while retaining the ability to purchase GDP vehicles at its discretion to meet seasonal demand and allow flexibility in its de-fleeting cycle.

“With this amendment, the Company obtains maximum flexibility in purchasing vehicles. We will be able to make fleet purchase decisions based on the most favorable purchase economics available in a rapidly changing market place, rather than a predetermined mix of GDP and risk vehicles. Additionally, this amendment allows us the flexibility to reduce our credit exposure to the residual value guarantees provided by the vehicle manufacturers during an uncertain time in our economy,” said Scott Thompson, President and Chief Executive Officer.

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