Avis Budget Group Announces Intention to Offer $300 Million of Senior Notes
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
News Market Reaction – CAR
In the May 27 session, CAR declined 0.85%, reflecting a mild negative market reaction. Argus tracked a peak move of +4.1% during that session. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 29 | Q1 2026 earnings | Negative | -0.5% | Reported Q1 2026 net loss and negative Adjusted EBITDA despite strong revenue. |
| Apr 22 | Earnings date notice | Neutral | -48.4% | Announced upcoming Q1 2026 results date and investor call logistics. |
| Feb 18 | Q4 and FY 2025 results | Negative | -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.
Recent fundamental updates with losses or large headline events have generally coincided with negative price reactions, including sizable drawdowns around earnings-related dates.
Over the past several months, Avis Budget Group has reported sizeable losses alongside substantial revenues. Q4 2025 results showed $2.7 billion in revenue but a $856 million net loss, with a $518 million EV impairment and a $21.54% next-day decline. Full-year 2025 revenue was $11.7 billion with a $995 million net loss. Q1 2026 brought $2.5 billion revenue and a $234 million net loss. An earnings-date announcement on Apr 22, 2026 preceded a sharp 48.38% drop, highlighting sensitivity to capital structure and earnings headlines, which frames this new senior notes offering.
Key Terms
senior notes financial
indenture financial
rule 144a regulatory
regulation s regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
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
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 |
