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• AMERICAN PLUMBING & MECHANICAL, INC.
• SYDRAN SERVICES, LLC
• U.S. GEN NEW ENGLAND
• BUDGET GROUP, INC.
• WASHINGTON GROUP INTERNATIONAL, INC.

Budget Group, Inc.

BACKGROUND
Budget Group, Inc. (Budget) was one of the world’s leading vehicle rental companies with 2001 annual revenue of $2.2 billion. The Company had two main revenue sources: Car Rental and Truck Rental. Budget owned Budget Rent a Car Corporation, the third-largest global car rental company and the Company operated one of the two largest truck rental systems in the U.S. under the Ryder TRS and Budget Truck Rental Brands.
CDG represented the Revolving Credit Facility Banks of Budget. This $430 million Revolving Credit Facility was provided by a syndicate of approximately 30 financial institutions. This facility was used to issue letters of credit ("L/Cs") primarily to provide credit enhancement for fleet financing and, to a lesser extent, for other corporate purposes. As of December 30, 2001, the Company had approximately $3.05 billion of fleet indebtedness.

ISSUES

• An overall decline in airline travel subsequent to September 11, 2001.
• A deterioration in pricing due to competitive pressures.
• A challenging wholesale market for used vehicles.
• The Company needed to be deleveraged.
• Budget did not have the ability to "fleet-up" due to financial constraints.
• The Company was still integrating the two truck businesses (Ryder TRS and Budget).
• Budget needed to implement additional cost cuts in excess of $50 million.
• Tight cash flow, with the Company required to make monthly lease payments of approximately $70 million.
• Missed lease payments which could have resulted in "rapid amortization" of fleet unless replacement fleet financing was obtained.

VALUE TO CLIENT

• CDG advised the banks in understanding the Company’s current capital structure and operations, provided analysis of various strategic alternatives, reviewed Budget’s business plan, prepared liquidation analyses, analyzed fleet financing scenarios and negotiated with the Company on loan amendments / extentions.
• Substantially all of the assets of Budget were sold to a unit of Cendant Corp. in a deal valued at $506.8 million.
• As part of the agreement, the Revolving Credit Facility Banks were repaid in full.