Avis Budget Group Completes Pricing of $700 Million Senior Notes

Author: Owen Jenkins Updated: 09-10-2024 05:30 PM

Avis Budget Group Completes Pricing of Senior Notes

On September 10, 2024, Avis Budget Group, Inc. (NASDAQ: CAR) announced a significant financing move with the pricing of $700 million in senior notes. This private offering involves an impressive 8.250% interest rate, which marks a $200 million increase from earlier projections. The company’s wholly-owned subsidiaries, Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., are responsible for this offering.

Notes Overview and Details

The newly issued notes are set to mature on January 15, 2030. Closing for this offering is anticipated to take place shortly, subject to standard closing protocols. The notes will be issued at par value and are backed by the company, with certain subsidiaries providing guarantees. This backing signifies a strong commitment to investors looking for credible investment opportunities.

Utilization of Proceeds

Avis Budget Group plans to use the net proceeds from this offering for a variety of corporate purposes. This includes repaying existing debts such as their floating rate term loan, due in 2029, and addressing any outstanding fleet financial obligations. Funds will also cater to associated fees and expenses linked to these transactions, thereby strengthening the company's financial standing.

Investment Offering Details

The notes will be available exclusively to qualified institutional buyers in accordance with Rule 144A of the Securities Act. Beyond the United States, these offerings comply with Regulation S of the Securities Act, ensuring a wider audience can potentially invest in these notes. It is important to note that the notes and guarantees have not been and will not be registered under any securities laws. Thus, they cannot be sold in the US unless exempted from these requirements.

About Avis Budget Group

Avis Budget Group stands as a prominent global player in the mobility solutions industry. Operating under both the Avis and Budget brands, the company maintains about 10,250 rental locations across nearly 180 countries. Alongside its vehicle rental services, the company also leads in the car-sharing arena with its Zipcar brand. Primarily operating its car rental facilities directly in North America, Europe, and Australasia, Avis Budget collaborates with licensees in other regions worldwide. The headquarters of Avis Budget Group is located in Parsippany, N.J.

Investor Relations and Media Contacts

For those interested in more information, Avis Budget Group has listed their investor relations contact as David Calabria, reachable via email at IR@avisbudget.com. For media inquiries, James Tomlinson can be contacted at ABGPress@edelman.com.

Frequently Asked Questions

What is the amount of the senior notes offering by Avis Budget Group?

Avis Budget Group is offering a total of $700 million in senior notes.

What is the interest rate for the newly issued notes?

The senior notes carry an interest rate of 8.250%.

When do the senior notes mature?

The maturity date for the senior notes is January 15, 2030.

How does Avis Budget Group plan to use the proceeds?

The company plans to use the proceeds for general corporate purposes, including debt repayment and associated fees.

Who can invest in these senior notes?

The notes are offered only to qualified institutional buyers and certain other investors respecting the securities regulations.

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