Avis Budget Group Announces Pricing Of $600 Million Of Senior Notes
Avis Budget Group (NASDAQ: CAR) has announced the pricing of $600 million in senior notes, due June 15, 2032, with an interest rate of 8.375%. This represents a $100 million increase from the previously announced offering size. The notes will be issued at par and guaranteed on a senior unsecured basis by the company and certain U.S. subsidiaries. The offering is expected to close on May 19, 2025.
The company plans to use the proceeds for general corporate purposes, including potential repayment of its floating rate term loan A maturing in December 2025 and a portion of its outstanding fleet debt. The notes are being offered exclusively 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 il prezzo di 600 milioni di dollari in obbligazioni senior, con scadenza il 15 giugno 2032 e un tasso di interesse del 8,375%. Questo rappresenta un aumento di 100 milioni di dollari rispetto all'offerta precedentemente annunciata. Le obbligazioni saranno emesse al valore nominale e garantite in via senior non garantita dalla società e da alcune sue controllate statunitensi. La chiusura dell'offerta è prevista per il 19 maggio 2025.
La società intende utilizzare i proventi per scopi aziendali generali, incluso il possibile rimborso del prestito a tasso variabile Term Loan A in scadenza a dicembre 2025 e una parte del debito residuo relativo alla flotta. Le obbligazioni sono offerte esclusivamente a investitori istituzionali qualificati ai sensi della Regola 144A e a soggetti non statunitensi ai sensi del Regolamento S del Securities Act.
Avis Budget Group (NASDAQ: CAR) ha anunciado la fijación del precio de 600 millones de dólares en notas senior, con vencimiento el 15 de junio de 2032 y una tasa de interés del 8.375%. Esto representa un aumento de 100 millones de dólares respecto al tamaño de la oferta previamente anunciado. Las notas se emitirán a la par y estarán garantizadas en forma senior no asegurada por la compañía y ciertas subsidiarias estadounidenses. Se espera que la oferta cierre el 19 de mayo de 2025.
La compañía planea usar los ingresos para propósitos corporativos generales, incluyendo el posible pago anticipado de su préstamo a tasa flotante Term Loan A que vence en diciembre de 2025 y una parte de su deuda pendiente relacionada con la flota. Las notas se ofrecen exclusivamente a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S de la Ley de Valores.
Avis Budget Group (NASDAQ: CAR)가 만기일이 2032년 6월 15일인 6억 달러 규모의 선순위 채권을 8.375% 이자율로 발행한다고 발표했습니다. 이는 이전에 발표된 공모 규모에서 1억 달러 증가한 금액입니다. 채권은 액면가로 발행되며 회사와 일부 미국 자회사가 선순위 무담보로 보증합니다. 공모는 2025년 5월 19일에 마감될 예정입니다.
회사는 조달 자금을 일반 기업 목적에 사용할 계획이며, 2025년 12월 만기인 변동금리 Term Loan A의 일부 상환과 일부 미지급 차량 대출 부채 상환에 사용할 수 있습니다. 채권은 증권법의 규칙 144A에 따른 적격 기관 투자자와 규정 S에 따른 비미국인에게만 제공됩니다.
Avis Budget Group (NASDAQ : CAR) a annoncé la tarification de 600 millions de dollars en obligations senior, arrivant à échéance le 15 juin 2032, avec un taux d'intérêt de 8,375%. Cela représente une augmentation de 100 millions de dollars par rapport à la taille de l'offre précédemment annoncée. Les obligations seront émises au pair et garanties sur une base senior non garantie par la société et certaines filiales américaines. La clôture de l'offre est prévue pour le 19 mai 2025.
La société prévoit d'utiliser les fonds pour des besoins généraux d'entreprise, y compris le remboursement potentiel de son prêt à taux variable Term Loan A arrivant à échéance en décembre 2025, ainsi qu'une partie de sa dette de flotte en cours. Les obligations sont offertes exclusivement aux acheteurs institutionnels qualifiés selon la règle 144A et aux personnes non américaines selon le règlement S du Securities Act.
Avis Budget Group (NASDAQ: CAR) hat die Preisfestsetzung von 600 Millionen US-Dollar an Senior Notes bekanntgegeben, die am 15. Juni 2032 fällig werden und einen Zinssatz von 8,375% aufweisen. Dies stellt eine Erhöhung um 100 Millionen US-Dollar gegenüber dem zuvor angekündigten Angebotsvolumen dar. Die Notes werden zum Nennwert ausgegeben und von der Gesellschaft sowie bestimmten US-Tochtergesellschaften auf Senior-Unsecured-Basis garantiert. Der Abschluss des Angebots wird für den 19. Mai 2025 erwartet.
Das Unternehmen plant, die Erlöse für allgemeine Unternehmenszwecke zu verwenden, einschließlich der möglichen Rückzahlung seines variabel verzinslichen Term Loan A, der im Dezember 2025 fällig wird, sowie eines Teils seiner ausstehenden Flottenverbindlichkeiten. Die Notes werden ausschließlich qualifizierten institutionellen Käufern gemäß Rule 144A sowie Nicht-US-Personen gemäß Regulation S des Securities Act angeboten.
- Successful upsizing of the offering by $100 million shows strong investor demand
- Proceeds will help refinance existing debt and improve debt maturity profile
- Long-term maturity (2032) provides financial flexibility
- High interest rate of 8.375% indicates significant borrowing costs
- Increases overall debt burden of the company
Insights
Avis Budget Group secured $600M in high-yield debt at 8.375%, likely refinancing existing obligations while extending maturity timelines.
Avis Budget has successfully priced a
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The proceeds allocation is particularly significant - the company plans to use the funds for general corporate purposes, but specifically mentions potential repayment of their floating rate term loan maturing in December 2025 and part of their fleet debt. This represents proactive liability management by extending debt maturities from 2025 to 2032, reducing near-term refinancing pressure, and potentially replacing floating-rate debt with fixed-rate notes. In the current interest rate environment, locking in long-term fixed rates could provide stability in debt service costs.
The private placement approach through Rule 144A/Regulation S offering limits the investor base to qualified institutional buyers and non-U.S. persons, which is standard for corporate debt issuances of this nature and avoids the more extensive SEC registration requirements while still accessing substantial capital markets.
This financing move demonstrates Avis Budget's continued access to debt capital markets and proactive approach to managing its capital structure ahead of upcoming maturities.
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”), priced a private offering of
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 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, 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: David Calabria, IR@avisbudget.com | Media Relations Contact: Media Relations Team, ABGPress@edelman.com |
FAQ
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