Zipcar Completes $70MM Asset Backed Financing Transaction to Support Fleet Growth
New facility provides significant capital for fleet expansion
May 26, 2010
CAMBRIDGE, Mass., May 26 /PRNewswire/ -- Zipcar, Inc., the world's largest car sharing company, today announced it has implemented an asset backed securitization (ABS) program led by Credit Agricole Corporate and Investment Bank for an aggregate of $70 million in variable funding notes.
"Our asset-intensive business model requires ongoing access to capital to expand our fleet of Zipcars," said Scott Griffith, Chairman and Chief Executive Officer at Zipcar. "This ABS facility is an important strategic step for our company. It increases the total credit available to Zipcar and it will enable us to transition away from lease line financing, ultimately reducing our cost of financing while improving our customer experience with a fresh, growing fleet of Zipcars."
Zipcar operates a global car sharing network for more than 400,000 members with more than 7,000 vehicles in the U.S., Canada and the United Kingdom. Zipcar vehicles are available by the hour or by the day to members, who can reserve a car online or via phone or a mobile device. Hourly and daily rates include parking in the reserved spot, gas, insurance, mileage and 24/7 roadside assistance.
"Zipcar has become a mainstream transportation option in cities around the world, and we are pleased to be able to help them continue their growth," said Sam Pilcer at Credit Agricole CIB. "We look forward to supporting Zipcar as they expand and build the car sharing industry."
Zipcar is the world's leading car-sharing service with more than 400,000 members and 7,000 vehicles in urban areas and college campuses throughout the United States, Canada and the United Kingdom. Zipcar offers more than 30 makes and models of self-service vehicles by the hour or day to residents and businesses looking for an alternative to the high costs and hassles of owning a car. More information is available at www.zipcar.com.
About Credit Agricole Corporate and Investment Bank
With more than 13,000 employees in more than 50 countries, Credit Agricole CIB provides its clients with a complete range of products and services in the areas of capital markets, brokerage, investment banking, structured finance, and commercial banking.
Zipcar and the Zipcar logo are trademarks of Zipcar, Inc. Other company and product names may be trademarks of their respective owners.
SOURCE Zipcar, Inc.