Avis Budget Group Announces Pricing of €200 Million of Senior Notes

Rhea-AI Summary

Avis Budget Group announced the pricing of €200 million in additional 7.25% Senior Notes due 2030 through its subsidiary, Avis Budget Finance. These Notes will be added to the €400 million previously issued under the same terms. Priced at 100.25% of face value, the offering will close on May 21, 2024, pending standard conditions. Proceeds will be used for general corporate purposes, including debt repayment. The Notes are offered only to qualified institutional buyers under Rule 144A of the Securities Act and will not be registered in the U.S. This announcement does not constitute an offer to sell or buy any securities.

Positive

• Priced at 100.25% of face value, showing investor confidence.
• Proceeds can be used for corporate debt repayment, potentially improving financial stability.
• Guaranteed on a senior unsecured basis by the Company and certain U.S. subsidiaries, enhancing credibility.

Negative

• Issuance of additional debt may increase financial burden if not managed properly.
• High-interest rate of 7.25% could lead to substantial interest expenses.
• Private offering limits investor participation to qualified institutional buyers, restricting liquidity.

News Market Reaction

+3.54%

1 alert

+3.54% News Effect

On the day this news was published, CAR gained 3.54%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

PARSIPPANY, N.J., May 14, 2024 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) (the “Company”) announced today that its wholly-owned subsidiary, Avis Budget Finance plc (the “Issuer”), priced a private offering of €200 million aggregate principal amount of additional 7.25% Senior Notes due 2030 (the “Notes”). The Notes will be issued as additional notes under the Indenture, dated as of July 13, 2023, pursuant to which the Issuer previously issued €400 million aggregate principal amount of 7.25% Senior Notes due 2030. The Notes will have a maturity date of July 31, 2030. The closing of the offering of the Notes is expected to occur on May 21, 2024, subject to customary closing conditions. The Notes were priced at 100.25% of their 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 proceeds from the offering of the Notes for general corporate purposes, which may include repayment of indebtedness, including, without limitation, 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 March 31, 2024. 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: James Tomlinson, ABGPress@edelman.com

FAQ

When did Avis Budget Group announce the pricing of the additional €200 million Senior Notes?

Avis Budget Group announced the pricing on May 14, 2024.

What is the maturity date for the newly issued 7.25% Senior Notes by Avis Budget Group?

The maturity date for the Senior Notes is July 31, 2030.

What will Avis Budget Group use the proceeds from the €200 million Notes offering for?

The proceeds will be used for general corporate purposes, including debt repayment.

At what price were the additional €200 million Senior Notes issued?

The Notes were priced at 100.25% of their face value.

Who are the intended buyers for Avis Budget Group's €200 million Senior Notes?

The Notes are intended for qualified institutional buyers under Rule 144A of the Securities Act.

Will the €200 million Senior Notes be registered under the U.S. Securities Act?

No, the Notes and related guarantees will not be registered under the U.S. Securities Act.