Ogier has advised Avis Budget on the high yield bond financing for its $500 million acquisition of Zipcar. Avis Budget and Zipcar currently anticipate that the transaction will be completed next week.
Avis Budget Group, Inc. is a leading global 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 the world's leading car sharing network, with more than 777,000 members and nearly 10,000 vehicles in urban areas and college campuses throughout the United States, Canada, the United Kingdom, 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.
Commenting on the deal, Paul Burton, Managing Associate at Ogier in Jersey, said “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.”
The Ogier legal team in Jersey led by partner Raulin Amy comprised of Paul Burton, Laura Hendrick and Lisa Floris. The Ogier Corporate Services team was led by Peter Gatehouse and comprised of Alex Baker and Cheryl Heslop.
Ogier's cross-departmental team acted alongside Kirkland & Ellis in New York to advise Avis Budget on its placement of EUR 250 million eight-year unsecured bonds. Citi, Credit Agricole, Deutsche Bank, and J.P. 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 6%. The proceeds of issuance will part-finance Avis Budget's acquisition of Zipcar for USD 500 million.
Large multi-nationals which utilise special purpose issuers have a myriad of market and regulatory requirements to satisfy. In this case, the Jersey company provided both a level of flexibility and familiarity to the corporate bond-market investors which Avis Budget was targeting in the pan European/US offering.