Avis Budget $1 billion offering now has $250 million floater; fixed-rate tranches set at $375 million each

By Paul A. Harris

St. Louis, April 7 - Cendant Car Rental Group (Avis Budget)'s $1 billion multi-tranche bond offering (Ba3/BB-) has been restructured with the addition of a $250 million tranche of eight-year senior unsecured floating-rate notes, which will come with two years of call protection, according to a market source.

Meanwhile the sizes of both of the fixed-rate senior unsecured note tranches have been set at $375 million apiece. Those include eight-year notes, which will come with four years of call protection, and 10-year notes, which will come with five years of call protection.

Price talk is expected to emerge early in the week of April 10, with pricing to follow soon thereafter.

JP Morgan, Deutsche Bank Securities, Wachovia Securities, Banc of America Securities LLC and Citigroup are joint bookrunners for the Rule 144A and Regulation S transaction.

Proceeds will be used to repay asset-backed vehicle debt.

New York City-based Cendant Car Rental operates the Avis and Budget car rental businesses, and is expected to change its name to Avis Budget Car Rental LLC.

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