Avis Budget Sells $50 Million Notes

Avis Budget Car Rental LLC sold $450 million of senior notes in the 144a private placement market on March 5, said IFR, a Thomson Reuters service.

The size of the deal was increased from an originally planned $400 million.

Bank of America Merrill Lynch, Barclays Capital, Citigroup, Deutsche Bank, JP Morgan and Wells Fargo were the joint bookrunning managers for the sale.

Avis said it intends to use the net proceeds of the offering for general corporate purposes and to help repay debt on its floating rate term loan, which has an effective interest rate of approximately 9.2 percent.

As a result of the sale, Moody’s Investors Service raised the car rental company’s ratings. Moody’s said the changes related to its expectation that the company would close its offering of senior unsecured notes on the same day it announced the sale.

Moody's raised Avis's senior secured credit facility rating to "Ba2" from "Ba3" and its senior unsecured debt rating to "B3" from "Caa1."

The ratings service reiterated its "B2" corporate family and probability of default ratings, and set a "B3" rating for Avis' issuance of $400 million in senior unsecured notes.

Moody's said its ratings outlook for Avis is still "Positive."

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

Trump and Regulations: An Alt-Fuel View

With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

Enabling a telematics connection at the factory — and not through an aftermarket hardware installation — is a game changer for fleets.

Four Thoughts From the 2016 Conference Calls

Sifting through the notes of Avis Budget Group’s and Hertz Global Holdings’ recent fourth quarter conference calls give us some trend lines to watch out for in 2017. (Of course, this gives us an incomplete snapshot, as Enterprise Holdings is privately held.)

Job Finder: Access Top Talent. Fill Key Positions.

>