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Avis completes $750M offering of asset-backed bonds

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Parsippany-based vehicle rental services provider Avis Budget Group Inc. announced today that its Avis Budget Rental Car Funding LLC subsidiary has completed a $750 million offering of asset-backed bonds.

The bond offering includes a three-year, $325 million series and a five-year, $425 million series with an average interest rate of 2.6 percent — the company's lowest interest rate on a new bond offering since 2003.

The company projects that vehicle-backed interest costs will decline by $20 million to $25 million in 2012 compared to 2011 — a $5 million improvement from its projections, said David B. Wyshner, chief financial officer, in prepared remarks.

"This transaction further demonstrates the strong demand that exists for our asset-backed securities," Wyshner said.

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