Lehman Brothers and Goldman Sachs downsized a credit facility for Vanguard Car Rental USA that refinances existing debt and pays a dividend to sponsor, Cerberus Capital Management. The new facility consists of a $525 million first lien priced at LIBOR plus 5% and a $100 million second lien priced at LIBOR plus 7 1/2%.
The old facility consisted of a five-year, $175 million revolver and a six-year, $725 million term loan "B." Pricing on the facility was expected to be in the LIBOR plus 4 1/2% area on both tranches.
Based in Tulsa, Okla. Vanguard operates National Car Rental and Alamo Rent A Car. It bought both companies from ANC Rental Corp. in October 2003. Thomas Kennedy, executive v.p. and cfo, did not return a call by press time.