UNITED KINGDOM - D'Ieteren Takes Full Share
in Avis Europe's Proposed Rights Issue
June 28, 2010
D'Ieteren subsidiary Avis Europe plc announced late last week that
it would offer a 9 for 8 Rights Issue to raise approximately $228
million U.S. dollars (151 million pounds) at an issue price of 23
cents per new share (or 15 pence). In addition, Avis announced that
it has made an agreement to enter into a new bank revolving credit
facility for approximately $461 million U.S dollars (375 million
Euros), with a three-year maturity and one-year extension option,
exercisable at the lenders' discretion, replacing an existing facility
due to mature in February 2011, according to a release from D'Ieteren,
which also owns Belron.
D'Ieteren, which holds 59.6 percent of Avis Europe's issued share
capital, has irrevocably undertaken to fully exercise its rights
entitlement for around $135 million U.S. dollars (approximately
110 million Euros).
Company officials say the combination of the proposed Rights Issue
and the new revolving credit facility will result in a strengthened
balance sheet, a significant reduction in Avis Europe's borrowings,
an improved maturity profile and improved credit ratios.
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