- Avis Budget Group (NASDAQ:CAR +1%) announced that its wholly-owned subsidiary, Avis Budget Finance plc, has completed an offering of €250M aggregate principal amount of 4.5% Senior unsecured Notes due 2025 in a private offering.
- Net proceeds of the offering will be utilised to redeem all of its outstanding euro-denominated 6% Senior Notes due 2021 and a portion of its outstanding dollar-denominated Floating Rate Senior Notes due 2017.
- The Company also announced amendment to its senior credit facility, including a $188M increase in its outstanding term loans, a three-year extension of the maturity date of a portion its existing term loans, a reduction of the term loan interest rate, and the removal of the minimum rate applicable to term loans.
- With this transaction, the Company will have $1.15B of outstanding term loans, all with a maturity date of March 2022. The Company intends to use the proceeds from this transaction primarily to redeem the remaining outstanding Floating Rate Senior Notes due 2017.
- “These transactions not only reduce our corporate interest expense by more than $5 million a year going forward, but also position our balance sheet well for the long term,” said David B. Wyshner, President and Chief Financial Officer, Avis Budget Group. “Looking ahead, the Company now has virtually no corporate debt maturities before 2022.”
- Press Release