Avis expects to extend $265 million of term, $965 million of revolver

By Sara Rosenberg

New York, March 3 - Avis Budget Group Inc. expects that its proposed amendment will result in the extension of about $265 million of its term loan to 2014 from 2012 and about $965 million of revolver commitments to 2013 from 2011, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

About $210 million of revolver commitments will continue to mature in 2011 and about $60 million of term loan will continue to mature in 2012.

Pricing on the extended debt is 50 basis points higher than pricing on the non-extended debt.

Specifically, the extended term loan is priced at Libor plus 425 bps, while the non-extended term loan is priced at Libor plus 375 bps.

The extended revolver is priced at Libor plus 375 bps to 450 bps based on ratings with a minimum rate of Libor plus 400 bps until the non-extended revolver matures, while the non-extended revolver is priced at Libor plus 400 bps.

In addition, the amendment will revise the financial and non-financial covenants to provide more flexibility to the company.

The amendment is subject to the repayment of some of the company's term loan debt. To meet this condition, Avis is offering $400 million of senior notes that will be used to fund the paydown and for general corporate purposes.

Avis a Parsippany, N.J.-based provider of vehicle rental services.

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