New Issue: Avis Budget sells upsized $400 million eight-year notes at par to yield 5 1/8%

By Paul A. Harris

Portland, Ore., May 13 - Avis Budget Car Rental, LLC and Avis Budget Finance Inc. priced an upsized $400 million issue of eight-year senior notes (B2/B+/) at par to yield 5 1/8% on Tuesday, according to a syndicate source.

The deal was upsized from $350 million.

The yield printed at the tight end of yield talk in the 5¼% area; early guidance on the deal was 5¼%.

Morgan Stanley & Co. LLC, Barclays, Citigroup Global Markets Inc. and RBS Securities Inc. were the joint bookrunners.

The Parsippany, N.J.-based provider of vehicle rental services plans to use the proceeds, together with cash on hand, to redeem all of its outstanding 8¼% senior notes due 2019.

Issuers:	Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
Amount:	$400 million, increased from $350 million
Maturity:	June 1, 2022
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, Barclays, Citigroup Global Markets Inc., RBS Securities Inc.
Co-managers:	BMO Capital Markets Corp., RBC Capital Markets LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc.
Coupon:	5 1/8%
Price:	Par
Yield:	5 1/8%
Spread:	277 bps
First call:	June 1, 2017 at 103.844
Equity clawback:	35% at 105.125 until June 1, 2017
Trade date:	May 13
Settlement date:	May 16
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	5¼% area
Marketing:	Quick to market

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