Avis Budget Group receives $650M settlement cash

Q: How much cash did CAR receive in the Pentwater settlement?

Avis Budget Group received $650,000,000 in cash on October 5, 2026, under its agreement with Pentwater Capital Management LP and certain affiliated persons. The court approved the payment, and the amount will be recognized in the company's fourth-quarter financial statements.

Part of Avis Budget's settlement cash is expected to repay the remaining $350 million principal on notes due in 2027.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)How Sentiment works

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

How Sentiment works How the balance works

Form Type

8-K

Rhea-AI Filing Summary

Avis Budget Group, Inc. (CAR) received $650,000,000 in cash on October 5, 2026, under the Settlement and Release Agreement it entered into on June 19, 2026, with Pentwater Capital Management LP and certain affiliated persons. The agreement settles the company's lawsuit seeking recovery of short-swing profits under Section 16(b) of the Securities Exchange Act of 1934. The court approved the payment.

Avis Budget expects to use a portion of the settlement amount to repay the remaining $350 million outstanding principal on its 5.750% Senior Notes due 2027 before year-end. The company says this expected use may be affected by market conditions, liquidity needs or other factors. It will recognize the settlement amount in its fourth-quarter financial statements. The company stated that this disclosure is not a notice of redemption for the notes.

1 point · 0 major

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance works How Sentiment works

0 major · 0 points

Hollow bars mark forward-looking points. How the balance works

Positive

Moderate point. Forward-looking: it has not happened yet and may not happen.Expected repayment of $350 million in Senior Notes before year-end. 9.2% of market cap

Negative

None.

8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Key Figures

Cash settlement: $650,000,000 Outstanding principal: $350 million Interest rate: 5.750% +1 more

4 metrics

Cash settlement $650,000,000 Paid October 5, 2026

Outstanding principal $350 million Remaining principal the company expects to repay before year-end

Interest rate 5.750% Senior Notes due 2027

Maturity year 2027 5.750% Senior Notes

Key Terms

short-swing profits, Senior Notes, Settlement and Release Agreement

3 terms

short-swing profits regulatory

"recovery of short-swing profits under Section 16(b)"

Senior Notes financial

"5.750% Senior Notes due 2027"

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.

Settlement and Release Agreement regulatory

"pursuant to the previously reported Settlement and Release Agreement"

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much cash did CAR receive in the Pentwater settlement?

Avis Budget Group received $650,000,000 in cash on October 5, 2026, under its agreement with Pentwater Capital Management LP and certain affiliated persons. The court approved the payment, and the amount will be recognized in the company's fourth-quarter financial statements.

Will CAR redeem its 2027 Senior Notes?

Avis Budget said this disclosure does not constitute a notice of redemption for its 5.750% Senior Notes due 2027. The company expects to use a portion of the settlement amount to repay the remaining $350 million outstanding principal before year-end.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/06/2026 - 04:19 PM Accepted by SEC EDGAR 10/06/2026 - 04:18 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): October 5, 2026

Avis Budget Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware		001-10308		06-0918165
(State or Other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

379 Interpace Parkway

Parsippany, NJ

07054

(Address of Principal Executive Offices)

(Zip Code)

(973) 496-4700

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, par value $0.01		CAR		The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01. Other Events.

On October 5, 2026, Avis Budget Group, Inc. (the “Company”) was paid a settlement amount of $650,000,000 in cash (the “Settlement Amount”), pursuant to the previously reported Settlement and Release Agreement entered into on June 19, 2026 with Pentwater Capital Management LP and certain affiliated persons (“Pentwater”), to settle the Company’s lawsuit against Pentwater for the recovery of short-swing profits under Section 16(b) of the Securities Exchange Act of 1934. The payment of the Settlement Amount was approved by the court and will be recognized in the Company’s fourth quarter financial statements.

The Company expects to use a portion of the Settlement Amount to repay the remaining $350 million outstanding principal amount of its 5.750% Senior Notes due 2027 prior to year end.

Forward-Looking Statements

Statements regarding the expected use of the Settlement Amount 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, our expectations regarding the use of the Settlement Amount, which may be affected by changes in market conditions, our liquidity needs or other factors. 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 Reports on Form 10-Q for the quarterly periods ended March 31, 2026 and June 30, 2026. The Company undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances. Nothing herein shall constitute a notice of redemption with respect to the 5.750% Senior Notes due 2027.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	AVIS BUDGET GROUP, INC.


	By:	/s/ Jean M. Sera
	Name:	Jean M. Sera
	Title:	Senior Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary

Date: October 6, 2026

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

3 documents