Avis Budget Group Announces Intention to Offer $300 Million of Senior Notes

Avis Budget Group (NASDAQ: CAR) plans, subject to market conditions, to offer $300 million of additional 8.000% Senior Notes due 2031 via its subsidiaries in a private placement.

Rhea-AI Summary

Avis Budget Group (NASDAQ: CAR) plans, subject to market conditions, to offer $300 million of additional 8.000% Senior Notes due 2031 via its subsidiaries in a private placement. These notes will be senior unsecured obligations guaranteed by the parent and certain U.S. subsidiaries.

The company expects to use net proceeds, with cash on hand, to redeem part of its 5.750% Senior Notes due 2027 and pay related fees and expenses. The notes will be offered under Rule 144A and Regulation S and will not be registered under the Securities Act.

Positive

• Plans $300 million additional 8.000% Senior Notes due 2031
• Proceeds and cash on hand to redeem part of 5.750% 2027 notes
• New notes guaranteed on senior unsecured basis by U.S. subsidiaries

Negative

• Additional senior notes increase total principal of 8.000% 2031 debt to $800 million
• New offering is unregistered, limited to qualified institutional and non-U.S. investors

Argus May 27 session

-0.85% close to close Open Argus

Details

News Market Reaction – CAR

On May 27, the day this news came out, CAR closed 0.85% below the previous close.

Data tracked by StockTitan Argus for the May 27 session.

Market Context

This announcement details a planned private offering of $300 million in additional 8.000% Senior Not...

Analysis

This announcement details a planned private offering of $300 million in additional 8.000% Senior Notes due 2031, to help redeem a portion of 5.750% Senior Notes due 2027 and cover related costs. It follows recent periods of significant net losses and large EV-related impairments. Investors may track how this refinancing interacts with the company’s broader funding facilities, the active S-3ASR shelf registration, and future earnings reports when evaluating balance-sheet flexibility.

Key Figures

New notes offering: $300 million Coupon rate: 8.000% Existing 2031 notes: $500 million +2 more

New notes offering

$300 million

Additional 8.000% Senior Notes due 2031

Coupon rate

8.000%

Senior Notes due 2031

Existing 2031 notes

$500 million

Previously issued 8.000% Senior Notes due 2031

Notes to be redeemed

5.750%

Portion of Senior Notes due 2027 targeted for redemption

Maturity of new notes

2031

8.000% Senior Notes due 2031

Historical Context

3 past events · Latest: Apr 29

3 events

1. Apr 29

   Q1 2026 earnings

   24h Move

   -0.5%

   Reported Q1 2026 net loss and negative Adjusted EBITDA despite strong revenue.

2. Apr 22

   Earnings date notice

   24h Move

   -48.4%

   Announced upcoming Q1 2026 results date and investor call logistics.

3. Feb 18

   Q4 and FY 2025 results

   24h Move

   -21.5%

   Disclosed large Q4 and full-year net losses and EV-related impairment.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior notes, indenture, rule 144a, regulation s

4 terms

senior notes financial

"to offer $300 million aggregate principal amount of additional 8.000% Senior Notes due 2031"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

indenture financial

"The Notes will be issued as additional notes under the Indenture, dated as of November 22, 2023"

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

rule 144a regulatory

"buyers in reliance on Rule 144A under the Securities Act of 1933, as amended"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

regulation s regulatory

"outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PARSIPPANY, N.J., May 27, 2026 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) (the “Company”) announced today that its wholly-owned subsidiaries, Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. (together, the “Issuers”), intend, subject to market and other customary conditions, to offer $300 million aggregate principal amount of additional 8.000% Senior Notes due 2031 (the “Notes”) in a private offering. The Notes will be issued as additional notes under the Indenture, dated as of November 22, 2023, pursuant to which the Issuers previously issued $500 million aggregate principal amount of 8.000% Senior Notes due 2031. The Notes will be guaranteed on a senior unsecured basis by Avis Budget Group, Inc. and certain of its U.S. subsidiaries.

The Company intends to use the net proceeds from the offering of the Notes, together with cash on hand, to redeem a portion of its 5.750% Senior Notes due 2027 outstanding, and pay fees and expenses in connection with the foregoing. This press release does not constitute a notice of redemption.

The Notes and related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act. The Notes and related guarantees have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities. Any offers of the Notes will be made only by means of a private offering memorandum.

About Avis Budget Group
We are a leading global provider of mobility solutions through our three most recognized brands, Avis, Budget and Zipcar, as well as several other brands, well recognized in their respective markets. We license the use of the Avis, Budget, Zipcar and other brands’ trademarks to licensees in areas in which we do not operate directly. We and our licensees operate our brands in approximately 180 countries throughout the world. Our brands and mobility solutions have an extended global reach with approximately 10,000 rental locations throughout the world. We operate most of our car rental locations in North America, Europe and Australasia. We are headquartered in Parsippany, N.J. More information is available at avisbudgetgroup.com.

Forward-Looking Statements
Statements regarding the Notes offering and the expected use of proceeds therefrom are “forward-looking statements” and are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to, the ability to complete the offering on favorable terms, if at all, and general market conditions which might affect the offering. Additional information concerning these and other important risks and uncertainties can be found in the Company's filings with the SEC, including under the captions “Forward-Looking Statements” and “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026. The Company undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Investor Relations Contact: David Calabria, IR@avisbudget.com

Media Relations Contact: Media Relations Team, ABGPress@coynepr.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Avis Budget Group (NASDAQ: CAR) announce on May 27, 2026 about senior notes?

Avis Budget Group announced an intended private offering of $300 million additional 8.000% Senior Notes due 2031. According to the company, these will be issued by its subsidiaries and guaranteed on a senior unsecured basis by the parent and certain U.S. subsidiaries.

How will Avis Budget Group use the $300 million senior notes proceeds (CAR)?

Avis Budget Group intends to use net proceeds, plus cash on hand, to redeem a portion of its 5.750% Senior Notes due 2027. According to the company, remaining funds will cover fees and expenses related to the refinancing transaction.

What are the key terms of Avis Budget Group's 8.000% Senior Notes due 2031 (CAR)?

The planned offering involves $300 million of additional 8.000% Senior Notes due 2031, issued as part of an existing indenture. According to the company, the notes are senior unsecured and guaranteed by Avis Budget Group and certain U.S. subsidiaries.

Who can buy the new Avis Budget Group 8.000% Senior Notes (CAR)?

The new notes are being offered only to qualified institutional buyers under Rule 144A and certain non-U.S. investors under Regulation S. According to the company, the securities will not be registered under the Securities Act.

Are Avis Budget Group's new 8.000% Senior Notes due 2031 registered with the SEC?

The new 8.000% Senior Notes due 2031 will not be registered under the Securities Act. According to Avis Budget Group, they may be sold in the United States only under an exemption or in transactions not subject to registration requirements.

How does the new Avis Budget Group notes offering affect existing 8.000% 2031 debt (CAR)?

The company already has $500 million of 8.000% Senior Notes due 2031 outstanding under the same indenture. According to Avis Budget Group, the additional $300 million will be issued as part of this existing series of notes.