Avis 2012 Annual Report Download - page 81

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F-25
During 2012, the Company repurchased $217 million of its Convertible Notes at a cost of $257 million. In conjunction
with the repurchase of the Convertible Notes, the Company repurchased warrants and sold convertible note hedges
corresponding to the repurchased Convertible Notes. See Note 17—Stockholder’s Equity for more details.
AVIS BUDGET CAR RENTAL CORPORATE DEBT
Floating Rate Term Loans
The Company’s floating rate term loan due 2014 was originally issued in April 2006 as part of the Company’s senior
credit facility. In March 2010, the Company repaid $451 million of the loan and the terms were amended resulting in $52
million maturing in April 2012, which was subsequently repaid in October 2010, with the balance maturing in April
2014. In March 2012, the Company repaid the outstanding principal of $267 million.
The Company’s floating rate term loan due 2016 was issued in October 2011, for $20 million as part of the Company’s
senior credit facility. During 2012, the Company borrowed an additional $30 million under this floating rate term loan.
The floating rate term loan matures in May 2016 and bears interest at three-month LIBOR plus 300 basis points, for an
aggregate rate of 3.32% at December 31, 2012. The Company used the proceeds from the loan to partially fund the
acquisition of Avis Europe and to repay a portion of its floating rate term loan due 2018.
The Company’s floating rate term loan due 2018 was issued in October 2011 as part of the Company’s senior credit
facility. During the 2012, the Company repaid the entire outstanding principal of the floating rate term loan due 2018.
The Company’s floating rate term loan due 2019 was issued in March 2012 as part of the Company’s senior credit
facility. The $500 million loan matures in March 2019. The facility bears interest at the greater of three-month LIBOR or
1% plus 325 basis points, for an aggregate rate of 4.25% at December 31, 2012. Upon issuance of the loan, the Company
paid to the lenders 1% of each lender’s commitments under the loan, which payment was structured as an original issue
discount. During October 2012, the Company borrowed an additional $200 million under this floating rate term loan.
Upon issuance of the addition to the loan, the Company paid to the new lenders 1% of each new lender’s commitments
under the loan, which payment was structured as an original issue discount. The Company used the proceeds from the
loan to repay approximately $420 million of term loan borrowings due in 2014 and 2018 and $75 million of its senior
notes due in 2014.
Floating Rate Senior Notes
The Company’s Floating Rate Senior Notes were issued in April 2006 at 100% of their face value for aggregate proceeds
of $250 million. The interest rate on these notes is equal to three-month LIBOR plus 250 basis points, for an aggregate
rate of 2.81% at December 31, 2012. The floating rate notes pay interest quarterly on February 15, May 15, August 15
and November 15 of each year. The Company has the right to redeem these notes in whole or in part at any time at the
applicable scheduled redemption price, plus in each case, accrued and unpaid interest through the redemption date.
7% and 7¾% Senior Notes
The Company’s 7% and 7¾% Senior Notes were issued in April 2006 at 100% of their face value for aggregate
proceeds of $750 million. In 2010, the Company redeemed $175 million of its 7% Senior Notes due 2014 at 103.813%
plus accrued and unpaid interest. During 2012, the Company repaid the entire outstanding balance of $200 million of its
7% Senior Notes due 2014 at 100% plus accrued and unpaid interest, and redeemed the entire outstanding balance of
$375 million of its 7¾% Senior Notes due 2016 at 102.583% plus accrued and unpaid interest.
9% Senior Notes
The Company’s 9% Senior Notes were issued in March 2010 at 98.6% of their face value for aggregate proceeds of
$444 million. The notes pay interest semi-annually on March 15 and September 15 of each year. The Company has the
right to redeem these notes in whole or in part at any time on or after March 15, 2014, at the applicable redemption price,
plus any accrued and unpaid interest through the redemption date.
8¼% Senior Notes
The Company’s 8¼% Senior Notes were issued through three separate issuances of $400 million, $200 million and $125
million, in October and November 2010 and March 2012, respectively, and form a single series of debt securities. The
$400 million of notes were issued at 100% of their face value, the $200 million of notes were issued at 101% of their