Avis 2015 Annual Report Download - page 94

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F-25
Floating Rate Senior Notes due 2017. In November 2013, the Company issued its Floating Rate Senior
Notes at 98.75% of their face value for aggregate proceeds of $247 million. The interest rate on these notes
is equal to three-month LIBOR plus 275 basis points, for an aggregate rate of 3.16% at December 31, 2015;
however, the Company has entered into an interest rate swap to hedge its interest rate exposure related to
these notes at an aggregate rate of 3.58%.
9¾% Senior Notes due 2020. In October 2011, the Company issued 9¾% Senior Notes at par, for
aggregate proceeds of $250 million with interest payable semi-annually. The Company has the right to
redeem these notes in whole or in part at any time on or after September 15, 2015, at specified prices, plus
accrued interest through the redemption date. In April 2013, the Company purchased approximately $27
million of the aggregate principal amount, and in April 2015, the Company redeemed the remaining $223
million principal amount for $243 million plus accrued interest.
6% Euro-denominated Senior Notes. In March 2013, the Company issued €250 million (approximately $325
million, at issuance) of 6% Euro-denominated Senior Notes due March 2021, at par, with interest payable
semi-annually. The notes are unsecured obligations of the Company’s Avis Budget Finance plc subsidiary,
are guaranteed on a senior basis by the Company and certain of its domestic subsidiaries and rank equally
with all of the Company’s existing senior unsecured debt. The Company has the right to redeem these
notes in whole or in part on or after April 1, 2016 at specified redemption prices plus accrued interest. The
Company used the proceeds from the issuance to partially fund the acquisition of Zipcar.
In March 2014, the Company issued €200 million (approximately $275 million, at issuance) of additional 6%
Euro-denominated Senior Notes due 2021. These notes were sold at 106.75% of their face value with
interest payable semi-annually, for aggregate proceeds of approximately $295 million, with a yield to
maturity of 4.85%. In April 2014, the Company used the proceeds to repurchase $292 million principal
amount of its 8¼% Senior Notes.
5 % Senior Notes due 2022. In May 2014, the Company issued $400 million of Senior Notes due
2022 at par. In June 2014, the Company used the proceeds to repurchase the remaining $395 million
principal amount of its 8¼% Senior Notes. The notes were issued at par, with interest payable semi-
annually. The Company has the right to redeem these notes in whole or in part at any time on or after June
1, 2017 at specified redemption prices plus accrued interest.
5½% Senior Notes due 2023. In April 2013, the Company completed an offering of $500 million of 5½%
Senior Notes due April 2023. The notes were issued at par, with interest payable semi-annually. The
Company has the right to redeem these notes in whole or in part on or after April 1, 2018 at specified
redemption prices plus accrued interest. The Company used the proceeds to retire higher-cost debt.
In November 2014, the Company issued $175 million of additional 5½% Senior Notes due 2023 at 99.625%
of their face value, with interest payable semi-annually. The Company has the right to redeem these notes
in whole or in part on or after April 1, 2018 at specified redemption prices plus accrued interest. The
Company used the proceeds from the issuance to partially fund the acquisition of its Budget licensee for
Southern California and Las Vegas.
5¼% Senior Notes due 2025. In March 2015, the Company issued $375 million of 5¼% Senior Notes due
2025 at par. In April 2015, the Company used net proceeds from the offering to redeem the remaining $223
million principal amount of its 9¾% Senior Notes and to partially fund the acquisition of Maggiore.
The Floating Rate Senior Notes, the Senior Notes, the 9¾% Senior Notes, the Senior Notes, the
5½% Senior Notes and the 5¼% Senior Notes are senior unsecured obligations of the Company’s Avis
Budget Car Rental, LLC (“ABCR”) subsidiary, are guaranteed by the Company and certain of its domestic
subsidiaries and rank equally in right of payment with all of the Company’s existing and future senior
unsecured indebtedness.
In connection with the debt amendments and repayments for the years ended December 31, 2015, 2014
and 2013, the Company recorded $23 million, $56 million and $147 million in early extinguishment of debt
costs, respectively.