Vanguard Car Rental to launch new credit facility this month

By Sara Rosenberg

New York, May 8 - Vanguard Car Rental USA Inc. is expected to come to market this month with a new credit facility via joint leads Goldman Sachs and JPMorgan, according to a market source.

Specific details on the deal are not currently available, the source added.

Proceeds from the new credit facility will be used for a recapitalization that will include refinancing existing debt, paying a small dividend and enhancing liquidity.

In the summer of 2005, Vanguard had come to market with credit facility consisting of a $175 million revolver and a $725 million term loan that was going to be used to refinance existing indebtedness as well as to fund a distribution to shareholders.

However, that deal was pulled in August 2005 after being completely reworked to include a $100 million second-lien term loan talked at Libor plus 750 basis points, a downsized $525 million first-lien term loan that saw price talk get as high as Libor plus 500 bps and the $175 million revolver.

Lehman, Goldman Sachs and Citigroup were acting as the bookrunners on the 2005 deal, with Lehman the left lead.

The new deal that is anticipated to surface this month for Vanguard is said to be very different in terms of sources and uses, as it is not "predominantly a dividend deal," the source explained.

Vanguard is the Tulsa, Okla., owner and operator of Alamo Rent A Car and National Car Rental.

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