Avis Budget Car Rental increases term loan B amount to $500 million

By Sara Rosenberg

New York, March 9 - Avis Budget Car Rental LLC upsized its seven-year term loan B to $500 million from $375 million, according to a market source.

Pricing on the loan was left unchanged at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99.

As before, there is 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Friday.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays Capital Inc. and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance debt. The additional proceeds from the upsizing will be used to repay about $150 million of existing term loans due 2018 at the 101 call protection. Also, the expected amount of unsecured corporate debt to be repaid in this transaction was revised to $75 million from $100 million.

Avis is a Parsippany, N.J.-based vehicle rental operator.

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