New Issue: Avis Budget prices $400 million 8.25-year notes at par to yield 8¼%

By Paul A. Harris

St. Louis, Oct. 7 - Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. priced a $400 million issue of 8.25-year senior unsecured notes (B3/B/) at par to yield 8¼% on Thursday, according to an informed source.

The yield printed at the tight end of the 8¼% to 8 3/8% price talk.

Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., Credit Agricole CIB and RBS Securities Inc. were the joint bookrunners for the quick-to-market issue. Scotia Capital (USA) Inc. was the co-manager.

The Parsippany, N.J.-based vehicle rental company plans to use the proceeds either to partially fund the acquisition of Dollar Thrifty or to repay outstanding corporate debt.

Issuer:	Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
Amount:	$400 million
Maturity:	Jan. 15, 2019
Securities:	Senior unsecured notes
Bookrunners:	Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., Credit Agricole CIB, RBS Securities Inc.
Co-manager:	Scotia Capital (USA) Inc.
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	587 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2014, then callable at 104.125, 102.063, par on and after Oct. 15, 2016
Equity clawback:	35% at 108.25 until Oct. 1, 2013
Trade date:	Oct. 7
Settlement date:	Oct. 15
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	8¼% to 8 3/8%
Marketing:	Quick to market

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