Cendant Corporation Announces That Avis Budget Car Rental, LLC Priced $1
Billion Senior Notes Offering
NEW YORK, April 11 -- Cendant Corporation (NYSE:
CD) today announced that the parent of its vehicle rental business, Avis
Budget Car Rental, LLC, has priced a private offering of $1.0 billion
aggregate principal amount of its senior notes, which includes $375 million
in aggregate principal amount of its 7.625% senior notes due 2014, $375
million in aggregate principal amount of its 7.75% senior notes due 2016,
and $250 million in aggregate principal amount of its floating rate senior
notes due 2014. Cendant's vehicle rental business intends to use the net
proceeds from this offering, together with term borrowings under its
previously announced new senior secured credit facility, principally to
repay asset-backed vehicle indebtedness. The notes are unsecured and are
not guaranteed by Cendant Corporation.
This offering is part of Cendant's previously announced plan to
separate Cendant into four independent, pure-play companies -- one each for
Cendant's real estate, travel distribution, hospitality and vehicle rental
businesses.
Closing of the offering of the notes is scheduled for April 19, 2006
and is subject to customary conditions. The closing of the sale of the
notes is not contingent upon the consummation of Cendant's planned
separation transactions.
The notes will be offered in the United States to qualified
institutional buyers pursuant to Rule 144A under the Securities Act of
1933, as amended, and outside the United States pursuant to Regulation S
under the Securities Act. The notes have not been registered under the
Securities Act and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements.
This press release is neither an offer to sell nor the solicitation of
an offer to buy the notes or any other securities and shall not constitute
an offer, solicitation or sale in any jurisdiction in which, or to any
person to whom, such an offer, solicitation or sale is unlawful. Any offers
of the notes will be made only by means of a private offering memorandum.
About Cendant Corporation
Cendant Corporation is primarily a provider of travel and residential
real estate services. With approximately 85,000 employees, New York
City-based Cendant provides these services to businesses and consumers in
over 100 countries. More information about Cendant, its companies, brands
and current SEC filings may be obtained by visiting Cendant's Web site at
http://www.cendant.com.
About Avis Budget Car Rental, LLC
Avis Budget Car Rental operates two of the most recognized brands in
the global vehicle rental industry through Avis Rent A Car System, LLC and
Budget Rent A Car System, Inc. Avis is a leading rental car supplier to the
premium commercial and leisure segments of the travel industry and Budget
is a leading rental car supplier to the price-conscious segments of the
industry.
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Cendant and/or Avis Budget Car Rental, LLC
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Statements preceded by, followed by or that otherwise include the words
"believes," "expects," "anticipates," "intends," "projects," "estimates,"
"plans," "may increase," "may fluctuate" and similar expressions or future
or conditional verbs such as "will," "should," "would," "may" and "could"
are generally forward-looking in nature and not historical facts. Any
statements that refer to expectations or other characterizations of future
events, circumstances or results are forward-looking statements. The
Company cannot provide any assurances that the separation or any of the
proposed transactions related thereto will be completed, nor can it give
assurances as to the terms on which such transactions will be consummated.
The separation transactions are subject to certain conditions precedent,
including final approval by the Board of Directors of Cendant.
Various risks that could cause future results to differ from those
expressed by the forward-looking statements included in this press release
include, but are not limited to: risks inherent in the contemplated
separation and related transactions, including risks related to borrowings
and costs related to the proposed transactions; increased demands on
Cendant's management teams as a result of the proposed transactions;
changes in business, political and economic conditions in the U.S. and in
other countries in which Cendant and its companies currently do business;
changes in governmental regulations and policies and actions of regulatory
bodies; changes in operating performance; and access to capital markets and
changes in credit ratings, including those that may result from the
proposed transactions. Other unknown or unpredictable factors also could
have material adverse effects on Cendant's and its companies' performance
or achievements. In light of these risks, uncertainties, assumptions and
factors, the forward- looking events discussed in this press release may
not occur. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated, or if
no date is stated, as of the date of this press release. Important
assumptions and other important factors that could cause actual results to
differ materially from those in the forward looking statements are
specified in Cendant's 10-K for the year ended December 31, 2005, including
under headings such as "Forward-Looking Statements", "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations." Except for Cendant's ongoing obligations to disclose material
information under the federal securities laws, Cendant undertakes no
obligation to release publicly any revisions to any forward-looking
statements, to report events or to report the occurrence of unanticipated
events unless required by law.
SOURCE Cendant Corporation
Web Site: http://www.cendant.com
