Avis Budget Group has announced that its Avis Budget Rental Car Funding subsidiary has completed an offering of $650 million of five-year, fixed-rate asset-backed bonds with a weighted average interest rate of approximately 2.7 per cent.
The proceeds of the offering are expected to be used primarily to refinance maturing vehicle-backed debt, which has an average interest rate of approximately 3.6 per cent in 2015, and to support growth of our business.
The offering provides for a loan-to-value, or advance, ratio of approximately 80 per cent.
“The asset-backed financing market continues to represent a deep source of investment-grade funding for our business.
“We are pleased with the terms of this offering, enabling us to fund our North America fleet at very attractive rates,” said David Wyshner, Avis Budget Group chief financial officer.