Avis Budget gives early results in tender for 9 5/8% and 9¾% notes

By Jennifer Chiou

New York, April 3 - Avis Budget Group, Inc. wholly owned subsidiaries Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. reported the early tender results in its cash offer for their outstanding $450 million principal amount of 9 5/8% senior notes due 2018.

The issuers also are tendering for their $250 million of outstanding 9¾% senior notes due 2020 under a modified Dutch auction.

As reported, Avis will spend a total of $450 million in the offers.

As of 5 p.m. ET on April 2, the early deadline, holders tendered $325.42 million, or about 72%, of the 9 5/8% notes and $25,623,000, or roughly 10%, of the 9¾% notes.

The issuers said that they have accepted for payment the tendered 9 5/8% notes.

The tender offers will end at 11:59 p.m. ET on April 16 and 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 will be $1,127.50 for the 9 5/8% notes and between $1,165.00 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 tender 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 will be set based on a modified Dutch auction, and the total purchase price for the notes will equal $450 million minus the amount paid for the 9 5/8% notes.

The bid price for tendered 9¾% notes represents the minimum price a holder is willing to receive for those notes and must fall within the bid price range and be in increments of $1.25.

If the offer for the 9¾% notes is oversubscribed, the issuers will purchase the notes on a prorated basis.

Tendered notes may no longer be withdrawn.

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

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

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