Avis Budget issues price talk on $1 billion three-part notes offer

By Paul A. Harris

St. Louis, April 10 - Cendant Car Rental Group (Avis Budget) produced price talk on its three-tranche offering of high-yield notes (Ba3/BB-) on Monday, according to a market source.

The New York City-based operator of the Avis and Budget car rental businesses talked its $250 million tranche of eight-year floating-rate notes at Libor plus 250 to 275 basis points.

Meanwhile the company talked its $375 million tranche of eight-year fixed-rate notes at a yield in the 7¾% area, and its $375 million tranche of 10-year fixed-rate notes at the 7 7/8% area.

Pricing is expected on Tuesday.

JP Morgan, Deutsche Bank Securities, Wachovia Securities, Banc of America Securities and Citigroup are joint bookrunners for the Rule 144A/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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