Avis Budget gets tenders for 72% of 9 5/8% notes, 10% of 9¾% notes

By Jennifer Chiou

New York, April 17 - Avis Budget Group, Inc. wholly owned subsidiaries Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. announced the close of the cash offer for any and all of their $450 million principal amount of 9 5/8% senior notes due 2018 and the modified Dutch auction tender for their $250 million of outstanding 9¾% senior notes due 2020.

As previously reported, Avis said it would spend no more than a total of $450 million in the offers.

As of the expiration time of 11:59 p.m. ET on April 16, holders had tendered $325,595,000, or about 72%, of the 9 5/8% notes and $25,628,000, or roughly 10%, of the 9¾% notes.

All of the notes have been accepted for purchase.

At 5 p.m. ET on April 2, the early deadline, holders had tendered $325.42 million of the 9 5/8% notes and $25,623,000 of the 9¾% notes.

The issuers previously settled the early tenders for the 9 5/8% notes.

The tender offers will be funded primarily with the proceeds of a concurrent offering of $500 million of 5½% senior notes due 2023, which was completed on April 3.

For each $1,000 principal amount, the total purchase price is $1,127.50 for the 9 5/8% notes and $1,190.00 for the 9¾% notes.

The total purchase prices include a $30.00 early tender premium per $1,000 of notes tendered by the early tender deadline.

Holders who tendered after the early deadline will receive the total purchase price less the early premium.

The company also will pay accrued interest up to but excluding the settlement date.

Pricing for the 9¾% notes was set based on a modified Dutch auction, and the maximum purchase price for the notes was subject to a cap equal to $450 million minus the amount paid for the 9 5/8% notes.

Because the amount of 9¾% notes accepted for payment is less than the cap, the clearing premium is $25.00.

The bid price for tendered 9¾% notes represented the minimum price a holder was willing to receive for those notes and had to fall within the bid price range, $1,165.00 and $1,190.00, and be in increments of $1.25.

Barclays (800 438-3242 or collect 212 528-7581) was the dealer manager. D.F. King & Co., Inc. (800 967-4617 or banks and brokers 212 269-5550) was the information agent and tender agent.

The car rental company is based in Parsippany, N.J. It began the offer on March 19.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.