By Paul A. Harris
Portland, Ore., Nov. 15 – Avis Budget Group, Inc. priced a $500 million issue of Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. 8% senior notes due Feb. 15, 2031 (B1/BB-) at 99.341 to yield 8 1/8% in a Wednesday drive-by, according to market sources.
The yield printed at the wide end of yield talk in the 8% area and in line with initial guidance in the low-8% area.
The deal played to $700 million of demand, which was heard to have built slowly, a trader said.
Joint bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Truist Securities Inc. and SG Americas Securities LLC.
The issuing entities are wholly owned subsidiaries of Parsippany, N.J.-based vehicle rental company Avis Budget Group which plans to use the proceeds to redeem all of its 4˝% senior notes due 2025 and repay a portion of its floating-rate term loan C maturing in 2029, with the remainder to be used for general corporate purposes.
| Issuers: | Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 15, 2031
|
| Joint bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Truist Securities Inc. and SG Americas Securities LLC
|
| Co-managers: | MUFG Securities Americas Inc., Natixis Securities Americas LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities LLC
|
| Coupon: | 8%
|
| Price: | 99.341
|
| Yield: | 8 1/8%
|
| Spread: | 356 bps
|
| First call: | Nov. 15, 2026 at 104
|
| Trade date: | Nov. 15
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody’s: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% area
|
| Marketing: | Drive-by
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
