Published on 11/15/2010 in the Prospect News High Yield Daily.
New Issue: Avis Budget prices $200 million add-on to 8¼% notes due 2019 at 101
By Paul A. Harris
St. Louis, Nov. 15 - Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. priced a $200 million add-on to their 8¼% senior notes due Jan. 15, 2019 (B3/B/) at 101 on Monday, according to an informed source.
The reoffer price came on top of the price talk.
The pricing of the add-on notes renders an 8.039% yield to worst and an 8.082% yield to maturity.
Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., Credit Agricole CIB and RBS Securities Inc. were the joint bookrunners.
The Parsippany, N.J.-based vehicle rental company plans to use the proceeds either to partially fund the acquisition of Dollar Thrifty or to repay outstanding corporate debt.
| Issuers: | Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
|
| Face amount: | $200 million
|
| Proceeds: | $202 million
|
| Maturity: | Jan. 15, 2019
|
| Security description: | Add-on to the 8¼% senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., Credit Agricole CIB, RBS Securities Inc.
|
| Co-manager: | Scotia Capital
|
| Coupon: | 8¼%
|
| Price: | 101
|
| Yield to worst: | 8.039%
|
| Yield to maturity: | 8.082%
|
| Spread: | 511 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2014, then callable at 104.125, 102.063, par on and after Oct. 15, 2016
|
| Equity clawback: | 35% at 108.25 until Oct. 1, 2013
|
| Trade date: | Nov. 15
|
| Settlement date: | Nov. 18 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 101 area
|
| Marketing: | Quick to market
|
| Original issue: | $400 million price at par on Oct. 7, 2010
|
| Total issue size: | $600 million
|
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