Daily News: February 21, 2018

JPMorgan Agents $2.9B Avis Budget Group Facility Extension

Avis Budget Group extended the term of its $1.8 billion senior revolving credit facility for an additional two years to 2023. The company also extended the maturity of its $1.1 billion term loan for an additional three years to 2025, with no change in interest rate charged.

According to a related 8-K filing, JPMorgan served as administrative agent for the transaction and was joint lead arranger along with Citigroup Global Markets, Deutsche Bank Securities, Merrill Lynch and Morgan Stanley.

The financial covenant contained in its overall senior credit agreement was changed to a first lien leverage ratio not to exceed 2.5 times of consolidated EBITDA, as defined in the credit agreement.

“This extension and amendment of our credit agreement is part of our continued corporate strategy to seek opportunities in the market to improve our liquidity profile,” said Martyn Smith, Avis Budget Group interim CEO. “Looking ahead, the company now has no corporate debt maturities until 2022 and the majority of this debt is fixed at very attractive interest rates.”