By Paul A. Harris
St. Louis, April 11 - Avis Budget Car Rental LLC priced $1 billion of senior unsecured notes (Ba3/BB-) in three tranches on Tuesday, according to informed sources.
The company, formerly known as Cendant Car Rental LLC, priced a $250 million tranche of eight-year floating-rate notes at par to yield three-month Libor plus 250 basis points, at the tight end of the Libor plus 250 to 275 basis points price talk.
Avis Budget also priced a $375 million tranche of eight-year fixed-rate notes at par to yield 7 5/8%, on the tight end of the 7¾% area price talk.
In addition, the company priced a $375 million tranche of 10-year fixed-rate notes at par to yield 7¾%, again on the tight end of the 7 7/8% area price talk.
JP Morgan, Deutsche Bank Securities, Wachovia Securities, Banc of America Securities and Citigroup ran the books for the Rule 144A/Regulation S transaction.
Proceeds will be used to repay asset-backed vehicle debt.
The New York City-based issuer operates the Avis and Budget car rental businesses.
| Issuer: | Avis Budget Car Rental LLC (formerly Cendant Car Rental Group)
|
| Amount: | $1 billion
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| Bookrunners: | JP Morgan, Deutsche Bank Securities, Wachovia Securities, Banc of America Securities, Citigroup
|
| Security description: | Senior unsecured notes
|
| Trade date: | April 11
|
| Settlement date: | April 19
|
|
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| Eight-year floating-rate notes
|
| Amount: | $250 million
|
| Maturity: | May 15, 2014
|
| Coupon: | Three-month Libor plus 250 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 250 basis points
|
| Call features: | Callable after May 15, 2008 at 103, 102, 101, par from May 15, 2011 onwards
|
| Price talk: | Libor plus 250-275 bps
|
|
|
| Eight-year fixed-rate notes
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| Amount: | $375 million
|
| Maturity: | May 15, 2014
|
| Coupon: | 7 5/8%
|
| Price: | Par
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| Yield: | 7 5/8%
|
| Spread: | 268 bps
|
| Call protection: | Four years
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| Price talk: | 7¾% area
|
|
|
| 10-year fixed-rate notes
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| Amount: | $375 million
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| Maturity: | May 15, 2016
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| Coupon: | 7¾%
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| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 281 bps
|
| Call protection: | Five years
|
| Price talk: | 7 7/8% area
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