By Paul A. Harris
Portland, Ore., Nov. 6 – Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. priced an upsized $175 million add-on to their 5½% senior notes due April 1, 2023 (expected ratings B1/B+) at 99.625 to yield 5.556% on Thursday, according to an informed source.
The deal was upsized from $150 million.
The reoffer price came at the rich end of yield talk in the 99.5 area.
Credit Agricole CIB was the left bookrunner. Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the joint bookrunners.
The Parsippany, N.J.-based provider of vehicle rental services plans to use the proceeds for general corporate purposes, including the financing of a portion of the proposed acquisition of the Budget Car Rental licensee in Southern California and Las Vegas.
| Issuer: | Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
|
| Face amount: | $175 million, increased from $150 million
|
| Proceeds: | $174 million
|
| Maturity: | April 1, 2023
|
| Security description: | Add-on to 5½% senior notes due April 1, 2023
|
| Left bookrunner: | Credit Agricole CIB
|
| Joint bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Co-manager: | Scotia Capital
|
| Coupon: | 5½%
|
| Price: | 99.625
|
| Yield: | 5.556%
|
| Spread: | 331 bps
|
| First call: | April 1, 2018 at 102.75
|
| Trade date: | Nov. 6
|
| Settlement date: | Nov. 14 with accrued interest
|
| Existing ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 99.5 area
|
| Marketing: | Quick to market
|
| Original issue: | $500 million issue priced at par in March 2013
|
| Total issue size: | $675 million
|
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