Avis Budget Group Announces Intention to Offer $500 Million of Senior Notes
Avis Budget Group (NASDAQ: CAR) announced its intention to offer $500 million in senior notes due 2032 through its subsidiaries Avis Budget Car Rental, LLC 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 proceeds for general corporate purposes, including potential repayment of indebtedness such as its floating rate term loan A maturing in December 2025 and a portion of outstanding fleet debt. The offering is limited to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.
Avis Budget Group (NASDAQ: CAR) ha annunciato l'intenzione di offrire 500 milioni di dollari in obbligazioni senior con scadenza 2032 tramite le sue controllate Avis Budget Car Rental, LLC e Avis Budget Finance, Inc. Le obbligazioni saranno garantite da Avis Budget Group e alcune sue filiali statunitensi su base senior non garantita.
L'azienda prevede di utilizzare i proventi per scopi aziendali generali, inclusa la possibile estinzione di debiti come il prestito a tasso variabile Term Loan A in scadenza a dicembre 2025 e una parte del debito residuo relativo al parco veicoli. L'offerta è riservata a investitori istituzionali qualificati ai sensi della Regola 144A e a soggetti non statunitensi secondo il Regolamento S del Securities Act.
Avis Budget Group (NASDAQ: CAR) anunció su intención de ofrecer 500 millones de dólares en bonos senior con vencimiento en 2032 a través de sus subsidiarias Avis Budget Car Rental, LLC y Avis Budget Finance, Inc. Los bonos estarán garantizados en calidad de senior no asegurados por Avis Budget Group y ciertas subsidiarias estadounidenses.
La compañía planea usar los ingresos para propósitos corporativos generales, incluyendo el posible pago de deudas como su préstamo a tasa variable Term Loan A que vence en diciembre de 2025 y una parte de la deuda pendiente relacionada con la flota. La oferta está limitada a compradores institucionales calificados bajo la Regla 144A y personas no estadounidenses bajo el Reglamento S de la Ley de Valores.
Avis Budget Group (NASDAQ: CAR)는 자회사인 Avis Budget Car Rental, LLC와 Avis Budget Finance, Inc.를 통해 2032년 만기 선순위 채권 5억 달러를 발행할 계획임을 발표했습니다. 이 채권은 Avis Budget Group과 일부 미국 자회사가 선순위 무담보 보증을 제공합니다.
회사는 수익금을 일반 기업 목적에 사용할 계획이며, 여기에는 2025년 12월 만기인 변동 금리 Term Loan A 상환과 일부 미지급 차량 대출 상환이 포함될 수 있습니다. 이번 발행은 증권법의 규칙 144A에 따른 적격 기관 투자자 및 규정 S에 따른 비미국인에게 한정됩니다.
Avis Budget Group (NASDAQ : CAR) a annoncé son intention d’émettre 500 millions de dollars en obligations senior arrivant à échéance en 2032 via ses filiales Avis Budget Car Rental, LLC et Avis Budget Finance, Inc. Ces obligations seront garanties sur une base senior non sécurisée par Avis Budget Group et certaines filiales américaines.
La société prévoit d’utiliser les fonds pour des besoins généraux d’entreprise, y compris le remboursement potentiel de dettes telles que son prêt à taux variable Term Loan A arrivant à échéance en décembre 2025 et une partie de la dette restante liée à la flotte. L’offre est limitée aux investisseurs institutionnels qualifiés selon la règle 144A et aux personnes non américaines selon le règlement S du Securities Act.
Avis Budget Group (NASDAQ: CAR) gab bekannt, beabsichtige, Senior Notes im Wert von 500 Millionen US-Dollar mit Fälligkeit 2032 über seine Tochtergesellschaften Avis Budget Car Rental, LLC und Avis Budget Finance, Inc. anzubieten. Die Notes werden von Avis Budget Group und bestimmten US-Tochtergesellschaften unbesichert in Senior-Position garantiert.
Das Unternehmen plant, die Erlöse für allgemeine Unternehmenszwecke zu verwenden, einschließlich der möglichen Rückzahlung von Verbindlichkeiten wie dem variabel verzinsten Term Loan A mit Fälligkeit im Dezember 2025 und einem Teil der ausstehenden Flottenfinanzierung. Das Angebot ist auf qualifizierte institutionelle Käufer gemäß Regel 144A und Nicht-US-Personen gemäß Regulation S des Securities Act beschränkt.
- Potential debt refinancing could improve the company's debt structure
- Extension of debt maturity profile to 2032
- Opportunity to address upcoming December 2025 loan maturity
- Increase in total debt burden with new $500 million notes
- Additional interest expense from new notes issuance
Insights
Avis Budget Group is restructuring its debt with $500M in new senior notes, likely to refinance maturing debt obligations.
Avis Budget Group's proposed
The 2032 maturity of these new notes would effectively extend the company's debt maturity profile by approximately 7 years from the current December 2025 term loan maturity. This longer-term debt structure provides Avis with enhanced financial flexibility and reduces near-term refinancing pressures.
The private offering structure targeting qualified institutional buyers under Rule 144A suggests a relatively standard approach for corporate debt issuance. By avoiding a public registration process, Avis can execute this offering more quickly and with less regulatory overhead.
Since these are senior unsecured notes, they'll rank higher in the capital structure than subordinated debt but below secured obligations. The parent company guarantee strengthens the notes' credit profile by providing additional recourse beyond just the issuing subsidiaries.
This transaction appears primarily aimed at liability management rather than funding expansion, suggesting the company is prudently managing its debt obligations. The refinancing of floating rate debt with fixed-rate notes could also provide more predictable interest expenses, particularly valuable in the current interest rate environment.
PARSIPPANY, N.J., May 14, 2025 (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 for general corporate purposes, which may include repayment of indebtedness, including, without limitation, repayment of the Company’s floating rate term loan A maturing in December 2025 and a portion of its outstanding fleet debt, and to pay fees and expenses in connection therewith.
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, 2024 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025. 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 | Media Relations Team, ABGPress@edelman.com |
FAQ
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