Avis Budget Group Completes $750 Million Asset-Backed Bond Offering
Weighted Average Interest Rate of 2.0% Represents the Lowest Cost for
Five-Year, Fixed-Rate ABS Debt in the Company's History
PARSIPPANY, N.J., Feb. 13, 2013 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc.
(Nasdaq:CAR) announced today that its Avis Budget Rental Car Funding (AESOP)
LLC subsidiary has completed an offering of $750 million of asset-backed bonds
with a weighted average interest rate of approximately 2.0%, the lowest rate
on five-year, fixed-rate vehicle debt in the Company's history.
The proceeds of the offering are expected to be used primarily to refinance
vehicle debt maturing in 2013 and to help fund our anticipated 2013 peak
summer fleet needs. The offering provides for a loan-to-value, or advance,
ratio of approximately 76%.
"We are pleased with the terms of this offering, which will provide us with
low-cost financing for the next five years," said David B. Wyshner, Avis
Budget Group Senior Executive Vice President and Chief Financial Officer. "We
continue to refinance our vehicle-related debt at attractive rates, allowing
us to further reduce our vehicle-related financing costs."
Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Statements preceded by, followed by or that
otherwise include the words "believes," "expects," "anticipates," "intends,"
"projects," "estimates," "plans," "may increase," "may fluctuate," "will,"
"should," "would," "may" and "could" or similar words or expressions are
generally forward-looking in nature and not historical facts. Important risks,
assumptions and other important factors that could cause future results to
differ materially from those expressed in the forward-looking statements are
specified in Avis Budget Group's Annual Report on Form 10-K for the year ended
December 31, 2011 and Quarterly Report on Form 10-Q for the quarter ended
September 30, 2012, including under headings such as "Forward-Looking
Statements", "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and in other filings and
furnishings made by the Company with the Securities and Exchange Commission
from time to time. 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.
The Series 2013-1 asset-backed bonds have not been and will not be registered
under the Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent registration or an applicable exemption from
registration requirements. This press release shall not constitute an offer to
sell nor the solicitation of an offer to buy the Series 2013-1 asset-backed
bonds, nor shall it constitute an offer, solicitation or sale in any
jurisdiction in which, or to any person to whom, such an offer, solicitation
or sale is unlawful.
About Avis Budget Group, Inc.
Avis Budget Group, Inc. is a leading global provider of vehicle rental
services through its Avis and Budget brands, with more than 10,000 rental
locations in approximately 175 countries around the world. 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 28,000 employees and is
headquartered in Parsippany, N.J. For more information, visit
The Avis Budget Group, Inc. logo is available at
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