Avis Budget Group 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, Avis 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 CFO, Avis Budget Group. “Looking ahead, the company now has virtually no corporate debt maturities before 2022.”
According to a related 8-K filing, JPMorgan was administrative agent for the transaction. Deutsche Bank Securities was syndication agent.
Citibank, Bank of America, Barclays Bank and Credit Agricole Corporate and Investment Bank were co-documentation agents. JPMorgan, Barclays, Citigroup Global Markets, Credit Agricole Corporate and Investment Bank, Deutsche Bank Securities and Merrill Lynch, Pierce, Fenner & Smith were joint lead arrangers and joint bookrunners.