Avis talks $250 million of five-year convertibles at 3.5%-4%, up 25%-30% for Wednesday

By Kenneth Lim

Boston, Oct. 6 - Avis Budget Group, Inc. plans to price $250 million of five-year convertible senior notes on Wednesday after the market closes, with price talk at a coupon of 3.5% to 4% and an initial conversion premium of 25% to 30%.

The notes will be offered at par.

Barclays Capital, Citigroup, Deutsche Bank, JPMorgan and Merrill Lynch are the bookrunners of the Rule 144A offering.

There is an over-allotment option for an additional $37.5 million.

The notes will be non-callable and may not be put.

The convertibles will have dividend and takeover protection.

Proceeds will be used for general corporate purposes, to repay debt and to fund a convertible note hedge and warrant transaction.

Avis is a Parsippany, N.J.-based car and truck rental company.

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