Avis Budget Group Inc., a leading provider of vehicle rental services, announced that it has completed the annual renewal of the asset-backed bank conduit facilities which provide a portion of the financing for its car rental fleet in the United States. At the company’s request, the two existing facilities, which had provided for $1.35 billion and $1.1 billion of financing, respectively, were combined into a single $1.95 billion facility.
The conduit financing was extended through Oct. 28, 2010, and now bears interest of LIBOR plus 2.25 percent, representing a reduction of 100 basis points versus the prior rate.
“We are pleased to have renewed this conduit financing ahead of schedule, at a reduced borrowing spread, and with all lenders affirmatively continuing to participate,” said David B. Wyshner, Avis Budget Group executive vice president and chief financial officer. “With this renewal and our other recent financing activities, we have not only refinanced all of our near-term domestic debt maturities but have sufficient capacity to fund our domestic fleet requirements for the next year.”