Avis Budget pricing $250 million four-year floaters Wednesday

By Paul A. Harris

Portland, Ore., Nov. 20 - Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. expect to price a $250 million offering of floating-rate senior notes due Dec. 1, 2017 (existing ratings B2/B/BB-) on Wednesday following a late-morning conference call with investors, according to an informed source.

Citigroup Global Markets Inc. is the bookrunner for the Rule 144A and Regulation S with registration rights transaction.

The notes will become callable after 18 months at 102, after 30 months at 101 and after 36 months and thereafter at par.

The notes feature a 35% equity clawback for 18 months and a 101% poison put.

The securities will be priced on a spread to three-month Libor.

The covenants are similar to those of Avis Budget's 5½% senior notes due 2023.

The Parsippany, N.J.-based provider of vehicle rental services plans to use the proceeds to redeem its existing floating-rate senior notes due 2014 and its floating-rate term loan due 2016 and for general corporate purposes.

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