New Issue: Europcar prices upsized €550 million two-part note transaction

By Paul A. Harris

St. Louis, May 9 - Europcar Groupe priced an upsized €550 million two-part note transaction on Tuesday, according to a market source.

The Paris-based car rental arm of Volkswagen priced an upsized €300 million issue of seven-year senior subordinated secured floating-rate notes (B1/B) at par to yield three-month Euribor plus 350 basis points. The notes priced on top of price talk that had been revised from Euribor plus 375 to 400 basis points. The floating-rate notes tranche was upsized from €250 million.

Europcar also priced a €250 million issue of eight-year senior subordinated unsecured fixed-rate notes (B2/B) at par to yield 8 1/8%, again on top of price talk, which in the case of the fixed-rate notes had come in from 8 1/8% to 8 3/8%.

Deutsche Bank Securities, Societe Generale, BNP Paribas and Calyon Securities ran the books for the Rule 144A and Regulation S offering.

The overall two-part transaction was upsized from €500 million.

Proceeds will be used to help fund the acquisition of Europcar by private equity firm Eurazeo from Volkswagen for about €3.32 billion.

Issuer:	Europcar Groupe
Amount:	€550 million (upsized from €500 million)
Bookrunner:	Deutsche Bank Securities, Societe Generale, BNP Paribas and Calyon Securities
Trade date:	May 9
Settlement date:	May 12
Distribution:	Rule 144A/Regulation S
Floating-rate tranche
Amount:	€300 million (increased from €250 million)
Maturity:	May 15, 2013
Security description:	Senior subordinated secured floating-rate notes
Coupon:	Three-month Euribor plus 350 bps
Price:	Par
Yield:	Three-month Euribor plus 350 bps
Call features:	Callable after May 15, 2007 at 102, 101, par on and after May 15, 2009
Ratings:	Moody's: B1
	Standard & Poor's: B
Price talk:	Euribor plus 350 bps area, revised from 375-400 bps
Fixed-rate tranche
Amount:	€250 million
Maturity:	May 15, 2014
Security description:	Senior subordinated unsecured fixed-rate notes
Coupon:	8 1/8%
Price:	Par
Yield:	8 1/8%
Spread:	416 bps
Call features:	Callable on and after May 15, 2010 at 104.063, 102.031, par on and after May 15, 2012
Ratings:	Moody's: B2
	Standard & Poor's: B
Price talk:	8 1/8% area, revised from 8 1/8%-8 3/8%

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