Avis Budget Group Acquires Commitments to Renew Asset-Backed Conduit Financing

Avis Budget Group Inc. announced Dec. 23 that it has received commitments to renew its $1.45 billion principal asset-backed bank conduit facility and its $1 billion seasonal conduit facility, which are used to finance cars for its rental fleet. The commitments provide for a reallocation of $100 million from the principal conduit facility to the seasonal conduit facility.

The principal conduit facility will be extended through Dec. 22, 2009, and the seasonal conduit facility will have a final maturity in November 2009 following 25 percent reductions in borrowing capacity in each of September and October. The initial borrowing spreads for these annually renewing facilities are unchanged from the levels established in connection with the extension of the principal conduit facility in October. The commitments are subject to customary conditions, principally satisfactory documentation, and the company expects that the renewal of the conduit facilities will become effective before the end of the year.

The company also announced that it has launched an amendment to its senior credit facilities to replace the leverage and interest coverage ratios with a minimum EBITDA covenant. The amendment also provides for a reduction to the revolving credit facility from $1.5 billion to $1.15 billion and a 2.5 percent increase in the cost of borrowings and letters of credit. Based on feedback from several of the lenders under such facilities, the company expects the amendment to become effective before the end of the year.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

What a Connected Fleet Means to Avis (and Car Rental)

Counter bypass is just the beginning. The promise of a “data-driven ecosystem” that connects renters with the rental agency, retail services, and even the city is a better managed fleet, an improved user experience, and new revenue opportunities during the rental itself.

Should Peer-to-Peer Renters Pay Airport Car Rental Fees?

The question is central to the City of San Francisco’s lawsuit against Turo for operating without a permit at San Francisco International Airport.

Hard Times Ahead for the Compact SUV Segment?

The hottest segment today is facing a glut of models and volume in tomorrow’s wholesale market.

Job Finder: Access Top Talent. Fill Key Positions.

>