Dollar Thrifty amends credit agreements

Dollar Thrifty said its third-quarter results have been hurt by lower per-day revenue, higher vehicle depreciation costs and the bankruptcy of one of its tour operators. This has prompted a need to reduce the company's non-vehicle debt or modify its leverage ratio, the company said.

From Sept. 30 to Nov. 30, the company's leverage ratio under its senior secured credit facility will be determined by corporate earnings before interest, taxes, depreciation and amortization during the four quarters ended June 30. Previously, the ratio was determined using the figure for the most recently completed four quarters.

Following the 60-day period, the leverage ratio test will again be determined using corporate EBITDA for the most recently completed four quarters.

Dollar Thrifty said it is prohibited from additional borrowings or from requesting the issuance of additional letters of credit through Nov. 30 under the credit facility. However, the company said it does not expect a need for additional enhancement letters of credit during that period.

The company also said it must maintain at least $60 million in unrestricted cash and cash equivalents.

Shares of Dollar Thrifty have taken a beating recently. Last week the company warned investors about its difficult third-quarter trends.

The broader car rental sector, meanwhile, has been troubled as gasoline prices have surged and the residual value of their automobile fleets have plunged.

Shares of Dollar Thrifty fell 12 cents, or 5.7 percent, to $2.01 in morning trading. The stock is down 91 percent so far this year. Shares have traded between $1.80 and $37.14 in the last 52 weeks.