Avis Budget Car Rental today completed an offering of senior floating-rate notes via sole bookrunner Citi, according to sources. The notes will be non-callable for the first 18 months, and then at 102 for 12 months, 101 for six months, and par thereafter. An equity clawback for 35% of the issue runs through the non-call period. Proceeds from the $250 million deal will be used to redeem the company’s existing floating-rate notes due 2014 totaling $150 million as well as the remaining $46 million of its term loan due 2016. Funds will also be used for general corporate purposes.
Terms:
| Issuer | Avis Budget Car Rental |
| Ratings | B/B2/BB- |
| Amount | $250 million |
| Issue | senior floating-rate notes (144A) |
| Coupon | L+275 |
| Price | 98.75 |
| Maturity | Dec. 1, 2017 |
| Call | nc1.5 (102, 101, par) |
| Trade | Nov. 20, 2013 |
| Settle | Nov. 25, 2013 (T+3) |
| Bookrunner | Citi |
| Co-leads | |
| Co’s. | |
| Px talk | L+275, 98.5 area |
| Notes | Calls: 1 year @ 102, 6 months @ 101, par; w/ 1.5-year equity clawback for 35% @ par plus coupon; subject to T+50 make-whole call; w/ change-of-control put @ 101. |