Ogier has advised Avis Budget on the high yield bond financing for its USD500m acquisition of Zipcar.
Avis Budget and Zipcar currently anticipate that the transaction will be completed this week.
Avis Budget Group is a provider of vehicle rental services through its Avis and Budget brands, with more than 10,000 rental locations in approximately 175 countries around the world.
Zipcar is a car sharing network, with more than 777,000 members and nearly 10,000 vehicles in urban areas and college campuses throughout the US, Canada, the UK, Spain and Austria. Zipcar offers vehicles by the hour or day to residents and businesses looking for an alternative to the high costs and hassles of owning a car.
Paul Burton, managing associate at Ogier in Jersey, says: "It is pleasing to see investors and advisers having the confidence and desire to use a Jersey bond issuing vehicle as a platform to access global capital markets and source acquisition financing. Our track record of establishing and advising on the use of such vehicles proved hugely beneficial for Avis Budget."
Ogier’s cross-departmental team acted alongside Kirkland & Ellis in New York to advise Avis Budget on its placement of EUR250m eight-year unsecured bonds. Citi, Credit Agricole, Deutsche Bank, and JP Morgan acted as joint bookrunners together with co-managers Mitsubishi UFJ, Natixis, and UniCredit. The Jersey company was formed to issue the bonds which are priced to yield six per cent. The proceeds of issuance will part-finance Avis Budget’s acquisition of Zipcar for USD500m.
