Moody’s rates Avis loan BB+

S&P said it assigned BB+ issue-level and 2 recovery ratings to Avis Budget Car Rental LLC's planned $500 million senior secured term loan due 2029. The 2 recovery rating indicates lenders would receive substantial (70%-90%; rounded estimate: 75%) recovery in default. Parent Avis Budget Group Inc. will guarantee the loan.

“We also revised the recovery rating on the company's outstanding senior secured debt to a rounded estimate of 75% from 85%. The 5 recovery rating on its senior unsecured debt is unchanged, but we revised the recovery rating to 25% from 15%, indicating our expectation that lenders would receive modest (10%-30%) recovery in the event of a payment default,” the agency said in a press release.

The company will use the proceeds for general corporate purposes.

© 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.