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Lehman, Goldman Lead $900M Car Rental Deal

28 Jul 2005

Lehman Brothers and Goldman Sachs are leading a $900 million facility for Vanguard Car Rental USA. Citigroup is a joint bookrunner.

Lehman Brothers and Goldman Sachs are leading a $900 million facility for Vanguard Car Rental USA. Citigroup is a joint bookrunner. The credit consists of a five-year, $175 million revolver and a six-year, $725 million term loan "B." Pricing on the facility is expected to be in the LIBOR plus 4 1/2% area on both tranches. The facility refinances existing debt and pays a dividend to sponsor, Cerberus Capital Management.

Based in Tulsa, Okla., Vanguard operates National Car Rental and Alamo Rent A Car. Vanguard bought National Car Rental and Alamo from ANC Rental Corp. in October 2003.

A spokesman for Vanguard declined comment. A call to Cerberus was not returned.

28 Jul 2005