By Paul A. Harris
Portland, Ore., March 9 – Avis Budget Group, Inc. priced an upsized $500 million issue of seven-year senior notes (B3/B) at par to yield 4¾% in a Tuesday drive-by, according to market sources.
The issue size increased from $350 million.
The yield printed at the tight end of yield talk in the 4 7/8% area. Initial talk was in the high 4% to 5% area.
Left lead bookrunner Credit Agricole CIB will bill and deliver.
The Parsippany, N.J.-based car rental company plans to use the proceeds to redeem all of its outstanding 6 3/8% senior notes due 2024. The incremental proceeds resulting from the $150 million upsizing of the deal, together with cash on hand, will be used to redeem a portion of the outstanding 5¼% senior notes due 2025.
| Issuers: | Avis Budget Car Rental LLC and Avis Budget Finance Inc.
|
| Amount: | $500 million, increased from $350 million
|
| Maturity: | April 1, 2028
|
| Securities: | Senior notes
|
| Left lead books: | Credit Agricole CIB (bill and deliver)
|
| Joint books: | Barclays, BofA Securities Inc., Morgan Stanley & Co. LLC
|
| Co-managers: | MUFG, NWM, SMBC Nikko Securities America Inc., SG Americas Securities LLC
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Call protection: | Callable April 1, 2024 at 102.375
|
| Trade date: | March 9
|
| Settlement date: | March 23
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4 7/8% area
|
| Marketing: | Drive-by
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