Pentwater details Avis Budget (NASDAQ: CAR) swaps, options and shares
Filing Impact
Filing Sentiment
Form Type
3
Rhea-AI Filing Summary
Pentwater Capital Management LP and Matthew Halbower filed an initial ownership report for Avis Budget Group, Inc., describing indirect positions held by certain Pentwater funds. The filing lists put options described as a right to sell and separate put and call options described as obligations to buy or sell Avis Budget common stock. It also discloses multiple cash-settled total return swaps referencing various share amounts, alongside 3,562,100 shares of common stock held indirectly. The cash-settled swaps give the funds economic results comparable to share ownership but, according to the disclosure, do not provide power to vote or dispose of the referenced shares. The reporting persons and the funds each disclaim beneficial ownership except to the extent of any pecuniary interest.
Positive
- None.
Negative
- None.
Insider Trade Summary
22 transactions reported
Mixed
22 txns
Insider
Pentwater Capital Management LP
Role
10% Owner
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| holding | Put Option (right to sell) | -- | -- | -- |
| holding | Put Option (obligation to buy) | -- | -- | -- |
| holding | Put Option (obligation to buy) | -- | -- | -- |
| holding | Put Option (obligation to buy) | -- | -- | -- |
| holding | Put Option (obligation to buy) | -- | -- | -- |
| holding | Put Option (obligation to buy) | -- | -- | -- |
| holding | Call Option (obligation to sell) | -- | -- | -- |
| holding | Call Option (obligation to sell) | -- | -- | -- |
| holding | Call Option (obligation to sell) | -- | -- | -- |
| holding | Call Option (obligation to sell) | -- | -- | -- |
| holding | Call Option (obligation to sell) | -- | -- | -- |
| holding | Call Option (obligation to sell) | -- | -- | -- |
| holding | Call Option (obligation to sell) | -- | -- | -- |
| holding | Call Option (obligation to sell) | -- | -- | -- |
| holding | Cash-Settled Total Return Swap | -- | -- | -- |
| holding | Cash-Settled Total Return Swaps | -- | -- | -- |
| holding | Cash-Settled Total Return Swaps | -- | -- | -- |
| holding | Cash-Settled Total Return Swaps | -- | -- | -- |
| holding | Cash-Settled Total Return Swaps | -- | -- | -- |
| holding | Cash-Settled Total Return Swaps | -- | -- | -- |
| holding | Cash-Settled Total Return Swaps | -- | -- | -- |
| holding | Common Stock, par value $0.01 per share ("Common Stock") | -- | -- | -- |
Holdings After Transaction:
Put Option (right to sell) — 60,000 shares (Indirect, See footnote);
Put Option (obligation to buy) — 1,744,800 shares (Indirect, See footnote);
Call Option (obligation to sell) — 60,000 shares (Indirect, See footnote);
Cash-Settled Total Return Swap — 1,700,000 shares (Indirect, See footnote);
Cash-Settled Total Return Swaps — 1,833,910 shares (Indirect, See footnote);
Common Stock, par value $0.01 per share ("Common Stock") — 3,562,100 shares (Indirect, See footnote)
Footnotes (1)
- This Form 3 is filed by Pentwater Capital Management LP ("PCM") and Matthew Halbower ("Mr. Halbower") (collectively, the "Reporting Persons") with respect to securities held by certain funds (the "Pentwater Funds") to which PCM serves as investment adviser. Mr. Halbower is the sole shareholder of MCH PWCM Holdings Inc., the general partner of PCM. Each of the foregoing disclaims beneficial ownership in the securities reported on this Form 3 except to the extent of its or his pecuniary interest, if any, therein, and this report shall not be deemed to be an admission that such Reporting Person is the beneficial owner of such securities for purposes of Section 16 or for any other purpose. Exercisable at any time. The Pentwater Funds previously entered into certain cash-settled total return swap agreements with an unaffiliated third-party financial institution with reference prices ranging from $86.3952 to $160.438267. The Pentwater Funds previously entered into certain cash-settled total return swap agreements with an unaffiliated third-party financial institution with reference prices ranging from $69.6485 to $167.5098. The Pentwater Funds previously entered into certain cash-settled total return swap agreements with an unaffiliated third-party financial institution with reference prices ranging from $118.05 to $161.2783. The Pentwater Funds previously entered into certain cash-settled total return swap agreements with an unaffiliated third-party financial institution with a reference price of $121.2708. The Pentwater Funds previously entered into certain cash-settled total return swap agreements with an unaffiliated third-party financial institution with reference prices ranging from $57.0355 to $203.88. The Pentwater Funds previously entered into certain cash-settled total return swap agreements with an unaffiliated third-party financial institution with reference prices ranging from $59.48 to $155.4712. The swap agreements shall continue until terminated as elected by the parties and currently have an initial reference termination date as set forth in column (2). The swap agreements provide the Pentwater Funds with economic results that are comparable to the economic results of ownership but do not provide them or the Reporting Persons with the power to vote or direct the voting or dispose of or direct the disposition of the shares that are referenced in the swap agreements (such shares, the "Subject Shares"). The Reporting Persons disclaims beneficial ownership of the Subject Shares except to the extent of its or his pecuniary interest therein, if any.
FAQ
Who is the reporting person in the Pentwater Form 3 for CAR?
The Form 3 identifies Pentwater Capital Management LP and Matthew Halbower as reporting persons for securities held by certain Pentwater funds in Avis Budget Group, Inc. (CAR), reflecting their role as investment adviser and related control person.
What type of securities does Pentwater report holding in Avis Budget (CAR)?
Pentwater reports indirect holdings in common stock, various put options and call options on Avis Budget shares, and several cash-settled total return swaps that reference Avis Budget common stock but settle in cash rather than delivering shares.
Do Pentwater’s cash-settled swaps on Avis Budget (CAR) provide voting rights?
No. The disclosure explains the cash-settled total return swaps give economic results comparable to ownership but do not provide power to vote, direct voting, dispose, or direct the disposition of the Avis Budget shares referenced in the swap agreements.
What reference prices are associated with Pentwater’s swaps on Avis Budget (CAR)?
Footnotes describe prior entry into cash-settled total return swaps with reference prices in ranges such as $86.3952 to $160.438267 and $57.0355 to $203.88, among others, illustrating different economic terms across the various swap positions.
Does Pentwater claim full beneficial ownership of the Avis Budget (CAR) positions?
No. Pentwater, Matthew Halbower, and the Pentwater funds each disclaim beneficial ownership of the reported securities except to the extent of any pecuniary interest. The report states it should not be deemed an admission of beneficial ownership under Section 16.