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.