Avis Budget launches $1.15 billion term B at Libor plus 200-225 bps

By Sara Rosenberg

New York, Feb. 16 – Avis Budget Group Inc. held a lender call on Thursday to launch a $1.15 billion term loan B due March 2022 that is talked at Libor plus 200 basis points to 225 bps with no Libor floor, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance an existing term loan due in 2019 that is priced at Libor plus 225 bps with a 0.75% Libor floor, to reprice an existing term loan due in 2022 from Libor plus 250 bps with a 0.75% Libor floor, and for general corporate purposes.

Lenders extending their commitments through this transaction and the incremental amount being raised from the current balance of term loan borrowings is talked with an original issue discount of 99.875, and the repricing is offered at par, the source added.

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

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