Avis Budget Group Announces Intention to Offer $500 Million of Senior Notes

Rhea-AI Summary

Avis Budget Group (NASDAQ: CAR) has announced its intention to offer $500 million in senior notes due 2030 through its subsidiaries, Avis Budget Car Rental, and Avis Budget Finance, Inc. The notes will be guaranteed on a senior unsecured basis by Avis Budget Group and certain U.S. subsidiaries. The company plans to use the net proceeds for general corporate purposes, including potential repayment of existing debt such as its floating rate term loan C maturing in 2029 and outstanding fleet debt. The offering is subject to market and other customary conditions and is to qualified institutional buyers and non-U.S. persons in compliance with SEC regulations.

Positive

• Potential to raise $500 million in new capital
• Opportunity to refinance existing debt, potentially improving financial structure
• Flexibility in use of proceeds for general corporate purposes

Negative

• Increase in overall debt levels
• Potential increase in interest expenses depending on the new notes' terms

News Market Reaction

-3.24%

1 alert

-3.24% News Effect

On the day this news was published, CAR declined 3.24%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

PARSIPPANY, N.J., Sept. 10, 2024 (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 $500 million aggregate principal amount of senior notes due 2030 (the “Notes”) in a private offering. 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 for general corporate purposes, which may include repayment of indebtedness, including, without limitation, repayment of its floating rate term loan C maturing in 2029 and its outstanding fleet debt, and to pay fees and expenses in connection with the foregoing.

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, both through our Avis and Budget brands, which have approximately 10,250 rental locations in approximately 180 countries around the world, and through our Zipcar brand, which is the world's leading car sharing network. We operate most of our car rental offices in North America, Europe and Australasia directly, and operate primarily through licensees in other parts of the world. We are headquartered in Parsippany, N.J.

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, 2023 and Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024. The Company undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Investor Relations Contact:	Media Relations Contact:
David Calabria, IR@avisbudget.com	James Tomlinson, ABGPress@edelman.com

FAQ

What is the size of Avis Budget Group's proposed senior notes offering?

Avis Budget Group (NASDAQ: CAR) intends to offer $500 million aggregate principal amount of senior notes due 2030.

How does Avis Budget Group (CAR) plan to use the proceeds from the senior notes offering?

The company plans to use the net proceeds for general corporate purposes, which may include repayment of indebtedness, such as its floating rate term loan C maturing in 2029 and outstanding fleet debt.

Who are the eligible buyers for Avis Budget Group's (CAR) senior notes offering?

The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons in compliance with Regulation S under the Securities Act.

When will the Avis Budget Group (CAR) senior notes mature?

The proposed senior notes are due to mature in 2030.