China’s CAR offers to trade 6 1/8% notes due 2020 for new notes, cash

By Wendy Van Sickle

Columbus, Ohio, April 22 – CAR Inc. is offering to exchange any and all of its $500 million of 6 1/8% senior notes due 2020 for new notes and cash.

For each $1,000 of existing notes tendered for exchange by the deadline, 11 a.m. ET on May 3, the company is offering $1,000 of new notes plus a cash consideration.

Each of the cash consideration and the coupon and tenor of the new exchange notes is expected to be announced on April 29.

CAR plans to pay the cash consideration out of internal funds.

The company is planning to conduct a concurrent offering of additional new notes or a separate series of senior notes with substantially the same terms as the new notes, other than the interest rate and maturity date.

The new money issue, if any, is expected to launch and price on May 7.

Settlement of the exchange offer is expected to occur on May 10.

Existing notes must be tendered for exchange in a minimum principal amount of $200,000 and integral multiples of $1,000 in excess thereof.

The exchange offer is open only to non-U.S. persons outside the United States in accordance with Regulation S.

The company said the main purpose of the exchange offer and the concurrent new money issuance is to extend the maturity profile of its foreign-currency denominated debt and improve its debt structure.

D.F. King (+44 20 7920 9700, 852 3953 7230 or CARInc@dfkingltd.com) is the information and exchange agent.

CAR is a Chaoyang, China-based car rental and used car company.

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