Avis Budget Group, Inc. (Nasdaq:CAR) announced today that its wholly-owned subsidiary, Avis Budget Car Rental, LLC, has closed an offering of $200 million of term loan borrowings due in 2019. The interest rate on the new term loan borrowings is nearly two hundred basis points lower than the interest rate on the debt being repaid.
The Company is using the net proceeds of the offering plus approximately $40 million of available cash to repay approximately $240 million term loan borrowings due in 2018.
"This transaction allows us to simultaneously extend our debt maturities and reduce our interest costs," said David B. Wyshner, Avis Budget Group Senior Executive Vice President and Chief Financial Officer."In addition, the use of $40 million of cash to repay term loan borrowings, combined with our repurchases of convertible bonds and redemption of senior notes earlier in the year, brings us close to our target of paying down more than $300 million of corporate debt in 2012."
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