By Paul A. Harris
St. Louis, March 5 - Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. priced an upsized $450 million issue of 9 5/8% eight-year senior notes (B3/B/) at 98.634 to yield 9 7/8% on Friday, according to an informed source.
The yield printed at the tight end of the 9 7/8% to 10 1/8% price talk.
The deal was upsized from $400 million.
Also, timing for the sale was moved forward; initially the roadshow was scheduled to end in Los Angeles on March 8.
Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc. and Wells Fargo Securities were the joint bookrunners.
Co-managers were Credit Agricole, RBS Securities Inc. and Scotia Capital.
Proceeds will be used to repay floating-rate term loan debt and for general corporate purposes.
Avis Budget is a Parsippany, N.J.-based provider of vehicle rental services.
| Issuers: | Avis Budget Car Rental, LLC and Avis Budget Finance, Inc.
|
| Amount: | $450 million
|
| Maturity: | March 15, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Wells Fargo Securities
|
| Co-managers: | Credit Agricole, RBS Securities Inc., Scotia Capital
|
| Coupon: | 9 5/8%
|
| Price: | 98.634
|
| Yield: | 9 7/8%
|
| Spread: | 655 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until March 15, 2014, then callable at a premium
|
| Equity clawback: | 35% at 109.625 until March 15, 2013
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 9 7/8% to 10 1/8%
|
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