By Paul A. Harris
Portland, Ore., June 19 – Avis Budget Group, Inc. priced a $400 million issue of eight-year senior notes (B1/BB) at par to yield 5¾% in a quick-to-market Wednesday trade, according to market sources.
The yield printed at the tight end of yield talk in the 5 7/8% area and tighter than initial guidance in the 6% area.
The deal was heard to be playing to $1 billion of demand, a trader said.
BofA Securities Inc. was the left bookrunner.
The Parsippany, N.J.-based vehicle rental company plans to use the proceeds, together with cash on hand, to partially redeem its 5½% senior notes due 2023.
| Issuers: | Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
|
| Amount: | $400 million
|
| Maturity: | July 15, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Scotia Capital
|
| Co-managers: | SunTrust Robinson Humphrey Inc., RBC Capital Markets LLC, BMO Securities and HSBC Securities (USA) Inc.
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 381 bps
|
| First call date: | July 15, 2022
|
| Trade date: | June 19
|
| Settlement date: | July 3
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A for life
|
| Price talk: | 5 7/8% area
|
| Marketing: | Quick to market
|
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