By Aleesia Forni
Virginia Beach, June 30 – ERAC USA Finance LLC priced $750 million of senior notes (Baa1/BBB+/) on Monday in tranches due 2019 and 2024, according to a market source.
A $500 million tranche of 2.35% notes due 2019 priced at 99.854 to yield 2.38%, or Treasuries plus 75 basis points.
There was also a $250 million add-on to the company’s existing 3.85% notes due 2024 priced at 100.66 to yield 3.771%, or Treasuries plus 125 bps.
J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The financing subsidiary of Enterprise Rent-A-Car Co. is based in St. Louis.
| Issuer: | ERAC USA Finance LLC
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Joint bookrunners: | J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities LLC
|
| Trade date: | June 30
|
| Settlement date: | July 3
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
|
|
| Five-year notes
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| Amount: | $500 million
|
| Maturity: | 2019
|
| Coupon: | 2.35%
|
| Price: | 99.854
|
| Yield: | 2.38%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 80 bps area
|
|
|
| Add-on to notes due 2024
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| Amount: | $250 million
|
| Maturity: | Nov. 15, 2024
|
| Coupon: | 3.85%
|
| Price: | 100.66
|
| Yield: | 3.771%
|
| Spread: | Treasuries plus 125 bps
|
| Price talk: | Treasuries plus 130 bps area
|
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