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Vanguard Credit Facility Pulled

The credit facility for Vanguard Car Rental USA was pulled from the market today, just a week after it was downsized by $275 million and pricing was upped by as much as 300 basis points on the second lien.

The credit facility for Vanguard Car Rental USA was pulled from the market today, just a week after it was downsized by $275 million and pricing was upped by as much as 300 basis points on the second lien. Lehman Brothers and Goldman Sachs are leading the deal that refinances existing debt and pays a dividend to sponsor Cerberus Capital Management. The company is expected to revisit the market in the fall.

 

"We did experience strong interest in the bank financing transaction, however, based on some investor input, ultimately the company and its owners viewed that the execution of this transaction would be enhanced with the benefit of our third quarter results," a spokesman for Vanguard said. "Accordingly, the company and its owners have decided to delay the transaction until early in the fourth quarter."

 

After the downsizing, the facility consisted of a $525 million first lien priced at LIBOR plus 5% and a $100 million second lien priced at LIBOR plus 7 1/2%. It launched at a $175 million revolver and a $725 million term loan "B." Based in Tulsa, Okla., Vanugard operates Alamo Rental Car and National Car Rental. It bought both companies from ANC Rental Corp. in October 2003. A call to Cerberus was not returned.

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