Avis Budget launches upsized €600 million five-year notes at 7%; pricing Wednesday

By Paul A. Harris

Portland, Ore., Feb. 21 – Avis Budget Group, Inc. launched an upsized €600 million offering of senior notes due 2029 (B1) at 7%, according to a market source.

The deal size increased from €400 million and launched at the tight end of the 7% to 7 1/8% price talk. Initial guidance was in the low-to-mid 7% area.

Pricing and allocations are set to happen later Wednesday.

The Rule 144A and Regulation S five-year notes come with two years of call protection.

Physical bookrunner Credit Agricole CIB will bill and deliver. Barclays is also a physical bookrunner.

The notes will be issued by Avis Budget Finance plc and guaranteed by parent Avis Budget Group, according to a company news release.

The Parsippany, N.J.-based car rental company plans to use the proceeds to redeem all of its outstanding 4¾% senior notes due 2026, with the remainder to be used for general corporate purposes, which may include repayment of other debt.

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