Pentwater exercises options for Avis Budget shares
Pentwater Capital Management LP, as investment adviser to certain funds, reported an in-the-money option exercise related to Avis Budget Group, Inc. common stock.
Sentiment and the balance of points
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Form Type
4
Rhea-AI Filing Summary
Pentwater Capital Management LP, as investment adviser to certain funds, reported an in-the-money option exercise related to Avis Budget Group, Inc. common stock. The funds exercised call options tied to 34,700 shares of common stock at an exercise price of $85.00 per share and now indirectly hold 7,083,000 shares after the transaction. A corresponding short put option position on the same underlying shares expired on the same date. The filing notes that Pentwater and Matthew Halbower each disclaim beneficial ownership beyond any pecuniary interest.
Insider Trade Summary
347 shares exercised/converted
Exercise
3 txns
Insider
Pentwater Capital Management LP, Halbower Matthew
Role
10% Owner | 10% Owner
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Derivative Expiration | Put Option (obligation to buy) | 347 | $0.00 | $0.00 |
| In-the-Money Exercise | Call Option (right to buy) | 347 | $0.00 | $0.00 |
| In-the-Money Exercise | Common Stock, par value $0.01 per share ("Common Stock") | 34,700 | $85.00 | $2.95M |
Holdings After Transaction:
Put Option (obligation to buy) — 0 contracts (Indirect, See footnote);
Call Option (right to buy) — 0 contracts (Indirect, See footnote);
Common Stock, par value $0.01 per share ("Common Stock") — 7,083,000 shares (Indirect, See footnote)
Footnotes (2)
- F1. This Form 4 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 4 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.
- F2. Exercisable at any time.
Key Figures
Shares acquired via option exercise: 34,700 shares
Call option strike price: $85.00 per share
Post-transaction common shares held: 7,083,000 shares
+3 more
6 metrics
Shares acquired via option exercise
34,700 shares
Common Stock from in-the-money call option exercise
Call option strike price
$85.00 per share
Exercise price for call options on Common Stock
Post-transaction common shares held
7,083,000 shares
Indirect holdings after transactions
Call option contracts exercised
347 contracts
Each contract linked to 100 common shares
Underlying shares per options block
34,700 shares
Underlying for both call and put options
Put option contracts expired
347 contracts
Short derivative position expiration
Key Terms
in-the-money derivative exercise, Call Option (right to buy, Put Option (obligation to buy, Expiration of short derivative position, +2 more
6 terms
in-the-money derivative exercise financial
"transaction_action: "in-the-money derivative exercise" for the call option"
Call Option (right to buy financial
"security_title: "Call Option (right to buy)" tied to Common Stock"
Put Option (obligation to buy financial
"security_title: "Put Option (obligation to buy)" on Common Stock"
Expiration of short derivative position financial
"transaction_code_description: "Expiration of short derivative position" for the put"
beneficial ownership financial
"footnote disclaims beneficial ownership except for pecuniary interest"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
Section 16 regulatory
"footnote: not deemed beneficial owner for purposes of Section 16"
Section 16 is a U.S. securities law rule that governs the trading and disclosure obligations of company insiders — typically officers, directors and large shareholders — to promote transparency and deter unfair profit-taking. It requires insiders to publicly report their stock trades and allows companies or the issuer to reclaim quick, short-term profits from certain insider trades, like a scoreboard and a refund policy that help investors see and limit possible insider advantage.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider activity did Pentwater report for AVIS BUDGET GROUP (CAR)?
Pentwater Capital Management LP, on behalf of certain advised funds, reported exercising in-the-money call options linked to 34,700 Avis Budget Group common shares at $85.00 per share, while a related short put option on the same underlying shares expired on the same date.
What happened to the put options reported in Pentwater’s Form 4 for CAR?
The filing shows a short put option position covering 347 contracts, representing 34,700 underlying Avis Budget Group shares at a strike price of $85.00, expired on the same date. After expiration, zero put option contracts remained outstanding in this reported position.
How is beneficial ownership described for Pentwater and Matthew Halbower in this Form 4?
The Form 4 states that Pentwater Capital Management LP and Matthew Halbower report the securities held by certain Pentwater funds but each disclaims beneficial ownership, except to the extent of any pecuniary interest. The report clarifies it should not be deemed an admission of beneficial ownership under Section 16.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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