Avis Budget Group Announces Pricing of $300 Million of Senior Notes

Avis Budget Group (NASDAQ: CAR) priced a private offering of $300 million in additional 8.000% senior notes due 2031, issued at 100.500% of face value under its existing 2031 indenture.

Rhea-AI Summary

Avis Budget Group (NASDAQ: CAR) priced a private offering of $300 million in additional 8.000% senior notes due 2031, issued at 100.500% of face value under its existing 2031 indenture.

Net proceeds, plus cash on hand, are intended to redeem part of its 5.750% senior notes due 2027 and cover related fees. The notes will be guaranteed on a senior unsecured basis and sold only to qualified institutional and certain non-U.S. investors.

Positive

• Private offering of $300 million additional 8.000% senior notes due 2031
• Notes priced slightly above par at 100.500% of face value
• Issuer plans to redeem a portion of 5.750% senior notes due 2027
• New notes guaranteed on a senior unsecured basis by U.S. subsidiaries

Negative

• New 8.000% notes have a higher coupon than 5.750% senior notes due 2027
• Additional senior notes temporarily increase gross principal outstanding before redemption

Argus May 28 session

+5.92% close to close Open Argus

Details

News Market Reaction – CAR

On May 28, the first trading day after this news, CAR closed 5.92% above the previous close.

Data tracked by StockTitan Argus for the May 28 session.

Market Context

On May 28, the first trading day after this news, the stock closed 5.9% above the previous close. A ...

Analysis

On May 28, the first trading day after this news, the stock closed 5.9% above the previous close. A strong positive reaction aligns with investors focusing on balance sheet moves and refinancing visibility. The company added $300M of 8.000% notes to an existing $500M 2031 tranche, intending to redeem part of 5.750% notes due 2027. Recent history shows shares fell 21.54% on Q4 2025 results and 0.47% on Q1 2026 results, so a favorable response to clearer debt maturity management and the existing S-3ASR framework may mark a shift from prior earnings-driven weakness.

Key Figures

New senior notes size: $300 million Coupon rate: 8.000% Existing 2031 notes: $500 million +5 more

New senior notes size

$300 million

Additional 8.000% Senior Notes due 2031 in private offering

Coupon rate

8.000%

Senior Notes due 2031

Existing 2031 notes

$500 million

Previously issued 8.000% Senior Notes due 2031

Issue price

100.500% of face value

Pricing of additional 8.000% Senior Notes

New notes maturity

February 15, 2031

Maturity date of 8.000% Senior Notes

Old notes coupon

5.750%

Senior Notes due 2027 to be partially redeemed

Old notes maturity

2027

5.750% Senior Notes to be partially redeemed

Closing date expectation

May 29, 2026

Expected closing of new note offering, subject to conditions

Historical Context

3 past events · Latest: Apr 29

3 events

1. Apr 29

   Earnings results

   24h Move

   -0.5%

   Q1 2026 loss and negative Adjusted EBITDA despite solid revenue.

2. Apr 22

   Earnings date

   24h Move

   -48.4%

   Announcement of Q1 2026 earnings release timing and investor call.

3. Feb 18

   Earnings results

   24h Move

   -21.5%

   Q4 2025 and full-year 2025 losses including EV impairment charge.

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, private offering, rule 144a, +1 more

5 terms

senior notes financial

"priced a private offering of $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.

private offering financial

"priced a private offering of $300 million aggregate principal amount of additional 8.000% Senior Notes"

A private offering is the sale of securities—such as shares or bonds—directly to a limited group of investors rather than through public markets or a broad auction. It matters to investors because it changes who owns the company and how much cash the business has available, which can dilute existing shareholders, affect share liquidity and price discovery, and signal strategic moves or funding needs; think of it as selling a batch of goods to a few trusted customers instead of opening a shop to everyone.

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”), priced a private offering of $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 have a maturity date of February 15, 2031. The closing of the offering of the Notes is expected to occur on May 29, 2026, subject to customary closing conditions. The Notes were priced at 100.500% of its face value and will be guaranteed on a senior unsecured basis by the Company 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:	Media Relations Contact:
David Calabria, IR@avisbudget.com	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?

Avis Budget Group announced pricing of $300 million of additional 8.000% senior notes due 2031. According to Avis Budget Group, these privately placed notes extend its existing 2031 series and are expected to close on May 29, 2026, subject to customary conditions.

What are the key terms of Avis Budget Group's $300 million 8.000% senior notes due 2031?

The new senior notes carry an 8.000% coupon, mature on February 15, 2031, and were priced at 100.500% of face value. According to Avis Budget Group, they will be issued as additional notes under the existing 2031 indenture and guaranteed on a senior unsecured basis.

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

Avis Budget Group intends to use net proceeds, along with cash on hand, to redeem a portion of its 5.750% senior notes due 2027. According to Avis Budget Group, remaining funds will cover fees and expenses related to this refinancing transaction.

When is the closing date for Avis Budget Group's $300 million senior notes offering?

The offering is expected to close on May 29, 2026, subject to customary closing conditions. According to Avis Budget Group, this date applies to the private issuance of the additional 8.000% senior notes due 2031 under its existing indenture.

Who can buy Avis Budget Group's 8.000% senior notes due 2031?

The notes are offered only to qualified institutional buyers under Rule 144A and to certain non-U.S. investors under Regulation S. According to Avis Budget Group, they are not available to the general public or U.S. retail investors.

Are Avis Budget Group's 8.000% senior notes due 2031 registered under the Securities Act?

No, the notes and related guarantees are not registered under the Securities Act or other jurisdictions' securities laws. According to Avis Budget Group, they may only be offered or sold in transactions exempt from, or not subject to, registration requirements.