Avis Completes $3.65 Billion of Asset Backed Financing.PARSIPPANY, N.J--(BUSINESS WIRE)--Aug. 4, 1997-- Investment Grade Ratings Issued from Moody's and Standard & Poor's HFS Incorporated (NYSE NYSE See: New York Stock Exchange : HFS) announced today that its subsidiary, Avis Rent A Car, Inc. (ARAC), has completed a $3.65 billion asset-backed financing, supported by vehicles and receivables from automobile manufacturers. In June 1997, HFS announced that ARAC has filed a registration on Form S-1 with the Securities and Exchange Commission with respect to an initial public offering of common stock. With regard to the financing, of the total $3.65 billion, $1.65 billion relates to three and five year Medium Term Notes (MTN MTN A short-form for Medium Term Note. MTN Medium term notes issued by corporations, much like shorter-term commercial paper. MTN See medium-term note (MTN). ), which are supported by a surety bond issued by MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association . The MTNF's are rated "Aaa" by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. and "AAA" by Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index . ARAC also launched a $2 billion asset-backed Commercial Paper Program which is rated "P-1" by Moody's and "A-1" by Standard & Poor's. The program is backed by a $1.8 billion liquidity facility and a $200 million Letter of Credit. "This financing, with no credit enhancement from or recourse to HFS, was a significant step in the overall recapitalization of ARAC and positions it for the pending IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. of its common stock scheduled for this fall," said HFS Vice Chairman Stephen P. Holmes. "We are pleased with the high level of interest the market has in these transactions." The asset-backed financing was arranged by Chase Securities Inc. and Lehman Brothers. ARAC operates the second largest general use car rental business in the world. ARAC rents vehicles to business and leisure travelers through approximately 540 rental locations in both airport and downtown/suburban locations in the United States, Canada, Puerto Rico, the U.S. Virgin Islands, Argentina, Australia and New Zealand. During 1996, ARAC completed nearly 13 million rental transactions with a fleet averaging 174,000 vehicles and generated total revenue of approximately $1.9 billion. CONTACT: HFS Inc., Parsippany Elliot Bloom, 201/952-8414 URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.c21/realty.com/hfs |
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