New Issue: Avis Budget upsizes to $300 million, prices five-year notes at par to yield 4 7/8%

By Paul A. Harris

Portland, Ore., Nov. 5 - Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. priced an upsized $300 million issue of five-year senior notes (B2/B/) at par to yield 4 7/8% on Monday, according to a syndicate source.

The yield printed on top of the yield talk.

Bank of America Merrill Lynch, Barclays, Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc. and RBS Securities Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $250 million.

The Parsippany, N.J.-based vehicle rental operator plans to use the proceeds to repay debt.

Issuer:	Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
Amount:	$300 million, increased from $250 million
Maturity:	Nov. 15, 2017
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Barclays, Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., RBS Securities Inc.
Co-manager:	Scotia Capital (USA) Inc.
Coupon:	4 7/8%
Price:	Par
Yield:	4 7/8%
Spread:	418 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 15, 2015, then callable at 102.438, 101.219, par on and after Nov. 15, 2017
Equity clawback:	35% at 104.875 until May 15, 2015
Change-of-control put:	101%
Trade date:	Nov. 5
Settlement date:	Nov. 8
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	4 7/8% area
Marketing:	Quick to market

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