Europcar sets price talk for €950 million two-part notes offering; pricing Wednesday

By Paul A. Harris

Portland, Ore., Oct. 18 – Europcar set price talk in its €950 million offering of high-yield notes in Rule 144A and Regulation S secured and unsecured tranches, according to market sources.

EC Finance plc (Fleetco) is selling €350 million of five-year senior secured notes (expected ratings B1/BB), which come with two years of call protection and are talked to yield in the 2¾% area. Joint global coordinator and joint bookrunner BNP Paribas will bill and deliver. HSBC is also a joint global coordinator and joint bookrunner. CM-CIC, Credit Agricole CIB, Deutsche Bank, ING and SG CIB are also joint bookrunners.

Proceeds of the tranche will be used to refinance €350 million of EC Finance notes due 2021.

Europcar Drive DAC (EGSA) is selling €600 million of seven-year senior unsecured notes (expected ratings B3/B-), which come with three years of call protection and are talked to yield 4¼% to 4½%. Joint global coordinator and joint bookrunner Deutsche Bank will bill and deliver for the unsecured notes. Credit Agricole and BofA Merrill Lynch are also joint global coordinators and joint bookrunners. BNP Paribas, Goldman Sachs, HSBC, Lloyds, Natixis and NatWest are also joint bookrunners.

Proceeds will be used to finance the acquisition of smart car rental company Goldcar.

Books were scheduled to close at 6 a.m. ET on Wednesday.

Europcar is a Paris-based vehicle rental company.

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