Pentwater Funds adjust Avis Budget (CAR) exposure with stock, options and swaps
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Pentwater Capital Management LP, as adviser to certain Pentwater Funds, reported a series of indirect derivatives and stock transactions in Avis Budget Group, Inc. common stock. The funds bought 425,000 shares of common stock at a price of $94.2590 per share and entered into additional call option positions while selling corresponding put options in open-market transactions on February 20–24, 2026. The funds also exercised various in-the-money put options and related derivative positions to acquire additional common shares and adjusted their exposure through cash-settled total return swap agreements. The filing notes the swap agreements provide economic exposure to underlying shares but no power to vote or dispose of those referenced shares, and the reporting persons disclaim beneficial ownership beyond any pecuniary interest.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 425,000 shares ($40,076,342)
Net Buy
13 txns
Insider
Pentwater Capital Management LP
Role
10% Owner
Bought
425,997 shs ($40.08M)
Sold
997 shs ($8K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Other | Cash-Settled Total Return Swaps | 200 | $0.00 | -- |
| Purchase | Call Option (right to buy) | 650 | $20.2858 | $13K |
| Sale | Put Option (obligation to buy) | 650 | $9.7932 | $6K |
| Purchase | Call Option (right to buy) | 347 | $8.8793 | $3K |
| Sale | Put Option (obligation to buy) | 347 | $5.8793 | $2K |
| X | Put Option (obligation to buy) | 126 | $0.00 | -- |
| X | Put Option (obligation to buy) | 675 | $0.00 | -- |
| X | Put Option (obligation to buy) | 51 | $0.00 | -- |
| Other | Cash-Settled Total Return Swaps | 55,000 | $0.00 | -- |
| X | Common Stock | 12,600 | $125.00 | $1.57M |
| X | Common Stock | 67,500 | $130.00 | $8.78M |
| X | Common Stock | 5,100 | $150.00 | $765K |
| Purchase | Common Stock, par value ("Common Stock") | 425,000 | $94.259 | $40.06M |
Holdings After Transaction:
Cash-Settled Total Return Swaps — 0 shares (Indirect, See footnote);
Call Option (right to buy) — 650 shares (Indirect, See footnote);
Put Option (obligation to buy) — 650 shares (Indirect, See footnote);
Common Stock — 3,999,700 shares (Indirect, See footnote);
Common Stock, par value ("Common Stock") — 3,987,100 shares (Indirect, See footnote)
Footnotes (1)
- 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. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $92.9355 to $95.1190, inclusive. The Reporting Persons undertake to provide to the Issuer, any security holder of the Issuer, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth herein. Exercisable at any time. The Pentwater Funds increased their position in cash-settled total return swap agreements. 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. The Pentwater Funds settled their position in a certain cash-settled total return swap agreement pursuant to its terms at a settlement price of $86.33.
FAQ
What insider activity did Pentwater Capital report in Avis Budget Group (CAR)?
Pentwater Capital, on behalf of Pentwater Funds, reported indirect trades in Avis Budget Group. The funds bought common stock, traded call and put options, exercised certain derivatives, and adjusted exposure through cash-settled total return swaps during February 2026.
What derivatives on Avis Budget Group (CAR) did Pentwater Funds trade?
The funds traded call and put options and cash-settled total return swaps. They purchased call options, sold put options in open-market transactions, exercised in-the-money put options, and increased as well as settled positions in cash-settled total return swap agreements linked to Avis Budget Group shares.
Who is considered the reporting person for these Avis Budget Group (CAR) transactions?
Pentwater Capital Management LP and Matthew Halbower are listed as reporting persons for positions held by Pentwater Funds. They each disclaim beneficial ownership of the reported securities except to the extent of any pecuniary interest in those fund positions.
Were the Avis Budget Group (CAR) derivative exercises cashless or priced transactions?
The filing shows multiple exercises of in-the-money derivative securities, including put options and options into common stock, with exercise prices indicated for some common stock transactions and zero price per share for certain derivative exercises, consistent with in-the-money exercises.