Avis Budget Group Inc. (CAR) announced Monday that it plans to offer $350 million in senior notes due 2027. The 5.75% notes will be offered as additional notes under the debt dated as of July 2019, in which $400 million in 5.75% senior notes due 2027 were previously issued. The rental car company expects to use the proceeds from the notes offering to redeem $100 million of 5.50% senior notes due 2023, with the rest to be used for general corporate purposes. The company has said last week that it has $1.5 billion in liquidity at the end of the second quarter, and estimated that cash burn would be approximately $900 million, including $100 million in debt retirement. The stock, which edged up 0.1% in premarket trading, has dropped 19.7% year to date through Friday, while the S&P 500 has gained 1.3%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 03, 2020 08:16 ET (12:16 GMT)
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