Avis extends $275 million of term and almost $1 billion of revolver

By Sara Rosenberg

New York, March 10 - Avis Budget Group Inc. completed its credit facility amendment, extending approximately $275 million of its term loan borrowings by two years to 2014 and about $1 billion of revolver commitments by two years to 2013, according to a news release.

The extended term loan is priced at Libor plus 425 bps, compared to previous pricing of Libor plus 375 bps.

And, 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 revised financial and non-financial covenants to provide more flexibility to the company.

The amendment was subject to the repayment of some of the company's term loan debt. To meet this condition, Avis sold $450 million of senior notes that were used to fund the paydown.

"We are extremely pleased to have executed against our plan to refinance and extend future corporate debt maturities well in advance of their stated maturity dates," said David B. Wyshner, executive vice president and chief financial officer, in the release.

"Our corporate debt maturities over the next three years now total only $50 million, and we feel very good about our current capitalization and liquidity position," Wyshner added.

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

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