Avis Budget Group Announces Closing of €250 Million Senior Notes Offering and Amends Its Senior Credit Facility
March 08 2017 - 10:30AM
Avis Budget Group, Inc. (NASDAQ:CAR) announced today that its
wholly-owned subsidiary, Avis Budget Finance plc, has completed an
offering of €250 million aggregate principal amount of 4.5% Senior
Notes due 2025 in a private offering.
The Company intends to use the net proceeds of the
offering 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
newly-issued notes are guaranteed on a senior unsecured basis by
Avis Budget Group, Inc. and certain of its U.S. subsidiaries and
were issued at par.
The Company also announced today that it has
amended its senior credit facility, including a $188 million
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 $1.15 billion 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.”
This press release shall not constitute an offer to
sell nor the solicitation of an offer to buy the notes or any other
securities and shall not constitute an offer, solicitation or sale
of any jurisdiction in which, or to any person to whom, such an
offer, solicitation or sale is unlawful. Any offers of the
notes were made only by means of a private offering memorandum.
About Avis Budget
GroupAvis Budget Group, Inc. is a leading global
provider of vehicle rental services, both through its Avis and
Budget brands, which have more than 11,000 rental locations in
approximately 180 countries around the world, and through its
Zipcar brand, which is the world’s leading car sharing network,
with more than one million members. Avis Budget Group
operates most of its car rental offices in North America, Europe
and Australia directly, and operates primarily through licensees in
other parts of the world. Avis Budget Group has approximately
30,000 employees and is headquartered in Parsippany, N.J.
Forward-Looking
StatementsThis press release contains certain
forward-looking statements that are subject to known and unknown
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such statements.
Such risks and uncertainties include, but are not limited to,
the anticipated use of the proceeds of the senior notes offering
and senior credit facility amendment. Important assumptions
and other important factors that could cause actual results to
differ materially from those in the forward-looking statements are
specified in Avis Budget Group’s Annual Report on Form 10-K for the
year ended December 31, 2016 and in other filings and furnishings
made by the Company with the Securities and Exchange Commission
from time to time. Except to the extent required by
applicable federal securities laws, the Company undertakes no
obligation to release publicly any revisions to any forward-looking
statements, to report events or to report the occurrence of
unanticipated events.
Contacts
Media Contact:
Alice Pereira
973-496-3916
PR@avisbudget.com
Investor Contact:
Neal Goldner
973-496-5086
IR@avisbudget.com
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