Pricing on the six-year, $875 million term loan for Avis Rent A Car flexed down last Monday to LIBOR plus 1 1/4% from LIBOR plus 1 1/2% due to oversubscription. The deal, which launched March 16, also consists of a five-year, $1.5 billion revolver (CIN, 3/17). Pricing of LIBOR plus 1 1/2% on the revolver did not change. JPMorgan and Deutsche Bank lead the deal.
Cendant Corp., which owns Avis, is using the deal to spin the rental car company off as it separates itself into four separate entities in the real estate, travel distribution, hospitality and vehicle rental businesses. Calls to Avis and Cendant were not returned.