Avis Raises $500 Million of Junk Bonds to Weather Shutdown
- Secured notes sold at 97 cents on the dollar to yield 11.297%
- Rental-car company boosted size of deal by $100 million
A customer waits at an Avis rental counter.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Avis Budget Group Inc. tapped the junk bond market for $500 million, the latest company to borrow at double-digit rates to ride out the travel shutdown.
The rental-car company sold secured notes to yield 11.297%, according to people with knowledge of the matter. Avis was able to boost the size of the deal from $400 million, the people said, asking not to be identified as the details are private.