By Paul A. Harris
Portland, Ore., Feb. 21 – Avis Budget Group, Inc. priced an upsized €600 million issue of five-year senior notes (B1) at par to yield 7% on Wednesday, according to market sources.
The deal size increased from €400 million.
The yield printed at the tight end of the 7% to 7 1/8% yield talk. Initial guidance was in the low-to-mid 7% area.
Physical bookrunners were Credit Agricole CIB (bill and deliver) and Barclays.
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, including the incremental proceeds resulting from the €200 million upsize of the deal, 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.
| Issuer: | Avis Budget Finance plc
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| Guarantor: | Avis Budget Group, Inc.
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| Amount: | €600 million, increased from €400 million
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| Issue: | Senior notes
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| Maturity: | Feb. 28, 2029
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| Physical bookrunners: | Credit Agricole CIB (bill and deliver) and Barclays
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| Coupon: | 7%
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| Price: | Par
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| Yield: | 7%
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| Call protection: | Two years
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| Trade date: | Feb. 21
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| Settlement date: | Feb. 28
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| Rating: | Moody’s: B1
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 7% to 7 1/8%
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