Avis Budget Group, a provider of vehicle rental services, has concluded an agreement with Assured Guaranty as a replacement provider of financial guarantee insurance for $250 million of Avis's asset-backed notes maturing in 2012.
The series 2005-2 notes issued by the company’s Avis Budget Car Rental Funding subsidiary were previously insured by Financial Guaranty Insurance (FGIC). Noteholders unanimously approved replacing FGIC with Assured as the notes’s financial guaranty insurer.
David Wyshner, executive vice president and chief financial officer of Avis Budget Group, said: This transaction along with recent new financings continues to demonstrate our proactive approach to maintaining strong liquidity for our operations. Assured’s triple-A ratings from the three leading rating agencies further underscore to investors the solid footing of this financing.