Posts Tagged ‘Scott L. Thompson’

Dollar Thrifty Automotive adds more franchises

Wednesday, April 14th, 2010

Dollar Thrifty Automotive Group has signed contracts for 13 new franchises, due to be granted within the next two months. The company also stated that an additional 15 franchises have been awarded during the past two quarters, and of the 28 new franchises, 19 will be located in the US, with nine overseas.

Scott L Thompson, President and Chief Executive Officer of the Tulsa based car rental giant, stated the importance of franchises to the Dollar Thrifty corporate strategy. Thompson points out that the expansion of the Dollar Thrifty brand in a cost-effective manner via franchising allows the company to reach smaller domestic markets, as well as make more inroads into the international arena.  The corporate head went on to say that the company is pleased with the opportunity to open new franchises, and has further plans for expansion.

Dollar Thrifty Automotive Group includes Dollar Rent A Car and Thrifty Car Rental. The company operates in 81 countries worldwide, has 296 corporate-owned stores, as well as over 1,250 franchises. 600 of the corporate-owned and franchised locations are within the United States and Canada, and the company employs over 6,000 workers.

Dollar Thrifty Automotive has seen its stock on a steady, upward climb during the past three months. Shares in the company were valued at 36.72 at the close of business on 13 April, up 12.99 since the 27 January close at 23.73.

$200 million in new cars for Dollar Thrifty after subsidiary finalizes loan

Tuesday, April 13th, 2010

Rental Car Finance Corp, a subsidiary of Dollar Thrifty Automotive Group, finalized loans of $200 million, the bulk of which the car rental giant plans to use towards increasing the size of its fleet. The Rental Car Asset Backed Variable Funding Notes, Series 2010-1, are to be paid off starting in April 2012, with amortization payments scheduled to be completed in September of that year.

President and CEO of Dollar Thrifty Automotive Group Scott L Thompson stated that the company was pleased with the loan, since fleet purchases will now be at a rate below that of the current medium term notes. Thompson went on to say that this step confirms that Dollar Thrifty is once again able to procure competitive rates for its vehicle financing plans, which will ultimately prove to provide a higher rate of return on assets.

Dollar Thrifty has repaid half of its existing Series 2005-1 notes as of 31 March of 2010, and the $200 million which remain will be amortized through June 2010. Following the completion of the Series 2005-1 notes in June, the company sees the maturity of its Series 2006-1 notes beginning in December 2010.

The $200 million Series 2010-1 notes are rated AA by Dominion Bond Rating Service, Inc, had no upfront fees as part of the transaction, and have an advance rate of roughly 65 percent. Interest on the notes is 275 basis points higher than the purchasing conduit’s weighted average commercial paper weight.