PARSIPPANY, N.J. -

Avis Budget Group revealed late last week that its Avis Budget Rental Car Funding subsidiary completed an offering of $650 million of asset-backed bonds with a weighted average interest rate of 3.5 percent.

Officials said the proceeds of the offering are expected to be used to refinance ABS debt maturing in 2012. The debt has a blended interest rate of more than 6 percent and a similar advance rate.

“We are very pleased by the strong demand for our asset-backed securities, especially given the increased volatility in the markets of late,” stated David Wyshner, Avis executive vice president and chief financial officer.

“The new asset-backed bonds will enable us to extend a substantial portion of our upcoming debt maturities over five years, and do so on attractive terms,” Wyshner added.