Avis Budget driving by with $600 million eight-year senior notes; early talk 5¾%

By Paul A. Harris

Portland, Ore., Feb. 17 – Avis Budget Car Rental, LLC plans to price a $600 million offering of eight-year senior notes (existing ratings B3/B-) in a Wednesday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial guidance has the notes coming to yield 5¾%, a trader said.

Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Credit Agricole CIB and Scotia Capital (USA) Inc. are the joint bookrunners.

MUFG, RBC Capital Markets LLC, Truist Securities Inc., BMO Capital Markets Corp., SMBC Nikko Securities America Inc., UniCredit Capital Markets LLC, BNP Paribas Securities Corp., Lloyds Securities Inc., Natixis Securities Americas LLC, NWM, SG Americas Securities LLC, HSBC Securities (USA) Inc., U.S. Bancorp Investments Inc., DNB and KBC Securities USA LLC are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The co-issuer will be Avis Budget Finance, Inc.

The Parsippany-Troy Hills, N.J.-based vehicle rental company plans to use the proceeds to fully redeem its 10½% secured notes due 2025.

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