New Issue: Avis Budget prices upsized $500 million 5½% 10-year notes at par

By Paul A. Harris

Portland, Ore., March 19 - Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. priced an upsized $500 million issue of 10-year senior notes (B2/B/) at par to yield 5½% on Tuesday, according to a syndicate source.

The yield printed on top of yield talk.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBS Securities Inc. and Scotia Capital (USA) Inc. were the joint bookrunners for the deal, which was upsized from $450 million.

The car rental company plans to use the proceeds to fund the tender for portions of its 9 5/8% notes due 2018 and 9¾% notes due 2020.

Issuers:	Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
Amount:	$500 million, increased from $450 million
Maturity:	April 1, 2023
Securities:	Senior notes
Left bookrunner:	Barclays
Joint bookrunners:	BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBS Securities Inc., Scotia Capital (USA) Inc.
Co-managers:	BMO Securities, Lloyds TSB, RBC Capital Markets, SMBC Nikko, SunTrust Robinson Humphrey Inc.
Coupon:	5½%
Price:	Par
Yield:	5½%
Spread:	359 bps
First call:	Make-whole call at Treasuries plus 50 bps until April 1, 2018, then callable at 102.75
Trade date:	March 19
Settlement date:	April 3
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	5½% area
Marketing:	Quick to market

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