Avis Budget Car to price $300 million eight-year notes on Monday; guidance is 6½%

By Paul A. Harris

Portland, Ore., March 14 – Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. plan to price a $300 million offering of eight-year senior notes (expected ratings B1/B+) on Monday trailing a late-morning conference call with investors, according to a syndicate source.

Initial guidance is 6½%, a trader said.

Citigroup Global Markets Inc. is the left bookrunner for the Rule 144A and Regulation S for life offering. Credit Agricole CIB, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners.

BMO Securities, RBC Capital Markets, Scotia Capital, SMBC Nikko and SunTrust Robinson Humphrey Inc. are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 basis points for the first three years and then become callable at par plus 75% of the coupon. They also feature a three-year 40% equity clawback and a 101% poison put.

The Parsippany, N.J.-based provider of vehicle rental services plans to use the proceeds for general corporate purposes, including the redemption of its 4 7/8% senior notes due 2017.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.