New Issue: Avis Budget prices $250 million notes due 2020 at par to yield 9¾%

By Paul A. Harris

Portland, Ore., Sept. 21 - Avis Budget Group priced a $250 million issue of senior notes due March 15, 2020 (B2/B/) at par to yield 9¾% on Wednesday, according to an informed source.

The yield printed on top of the price talk.

Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., RBS Securities Inc. and Scotia Capital (USA) Inc. were the joint bookrunners.

Proceeds will primarily be used to help fund the acquisition of Avis Europe and to repay debt of Avis Europe.

The issuing entity is AL Escrow Corp., which will be assumed by Avis Budget Car Rental LLC and Avis Budget Finance, Inc., subsidiaries of Avis Budget Group.

Parsippany, N.J.-based Avis Budget and Bracknell, England-based Avis Europe are vehicle rental companies.

Issuers:	AE Escrow Corp., to be assumed by Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
Amount:	$250 million
Maturity:	March 15, 2020
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., RBS Securities Inc., Scotia Capital (USA) Inc.
Coupon:	9¾%
Price:	Par
Yield:	9¾%
Spread:	815 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Sept. 15, 2015, then callable at 104.875, 102.438, par on and after Sept. 15, 2017
Equity clawback:	35% at 109.75 until Sept. 15, 2014
Trade date:	Sept. 21
Settlement date:	Oct. 3
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	9¾% area
Marketing:	Roadshow

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