Avis Budget Group Completes $580 Million Asset-Backed Bond Offering

Avis Budget Group Inc. announced March 23 that its Avis Budget Rental Car Funding LLC subsidiary has completed approximately $580 million offerings of three-year and five-year asset-backed bonds.

The transaction is the first multi-tranche asset-backed securities offering by a rental-car company since 2003. Based on the company's current fleet composition, the bonds are expected to provide the company with an advance rate of approximately 72 percent on applicable collateral.

"We are very pleased by the strong investor interest in our asset-backed securities. This transaction allows us to achieve advance rates and interest rates comparable to pre-2008 levels," said David B. Wyshner, Avis Budget Group executive vice president and chief financial officer. "Our strategy is to opportunistically refinance upcoming debt maturities well in advance of their stated maturities dates, and this offering is in line with that practice."

The multi-tranche $463 million Series 2010-3 asset-backed bonds were priced to yield 4.98 percent in the aggregate and have an expected final payment date in May 2015. The multi-tranche $116 million Series 2010-2 asset-backed bonds were priced to yield 3.96 percent in the aggregate and have an expected final payment date in August 2013.

The combined series have $500 million of asset-backed bonds rated Aaa by Moody's Investors Service and AAA by DBRS, and approximately $79 million of asset-backed bonds rated Baa2 by Moody's Investors Service and BBB (high) by DBRS.

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

Will Cars Become Transportation Appliances?

The cars are still the stars, but this year’s L.A. Auto Show revealed an auto industry at a crossroads.

U.S. Car Rental: Sanity in the Face of Disruption

A newfound austerity in fleeting is producing a domino effect of benefits for 2018.

Understanding The Fleetification of Everything

As fleet miles increase exponentially, and as new stratum of fleet enter both consumer and business use cases, the "founding fathers" who gathered at Fleet Forward in Miami last week have some work to do.

Job Finder: Access Top Talent. Fill Key Positions.

>