Avis Budget Group Announces Intention to Offer $300 Million of Senior Notes

Avis Budget Launches $300 Million Private Notes to Refinance 2027 Debt

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    <h3>Information</h3>
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    <h3>AI Summary</h3>
    <p>Avis Budget Group announced a private offering of $300 million of 8.000% Senior Notes due 2031, with proceeds to redeem part of the 2027 notes and cover fees. The private sale is directed at qualified institutional buyers under Rule 144A, not registered in the U.S. The move aims to reshape the debt maturity profile, though it could raise near-term interest costs.</p>
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    <h3>Key Points</h3>
    <ul><li>Avis Budget to issue $300M of 8.0% notes due 2031.</li><li>Proceeds plus cash to redeem 5.75% notes due 2027.</li><li>Notes offered privately to qualified institutional buyers.</li><li>Notes guaranteed senior unsecured by ABG and U.S. subsidiaries.</li><li>Not a redemption notice; offers via private memorandum.</li></ul>
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    <h3>Companies Mentioned</h3>
    <ul><li><strong>Avis Budget Group, Inc. (CAR)</strong>: Parent company; debt offering could influence credit metrics and equity valuation.</li><li><strong>Avis Budget Car Rental, LLC (N/A)</strong>: Issuer in the notes offering; no public ticker.</li><li><strong>Avis Budget Finance, Inc. (N/A)</strong>: Issuer; part of the private notes issuance.</li></ul>
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    <h3>Corporate Developments</h3>
    <p>Category: Corporate Developments. The financing activity affects capital structure and liquidity, with potential downstream effects on leverage and interest coverage used by investors to model CAR.</p>
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    <h3>Market-Moving</h3>
    <ul><li>Debt issuance expands ABG&#039;s senior note stack and liquidity options.</li><li>Proceeds redeploy to redeem 2027 notes, shifting near-term maturities.</li><li>Private placement terms imply reduced public market liquidity.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Aggregate principal: $300 million.</li><li>Coupon: 8.000%.</li><li>Maturity: 2031.</li><li>Issuers: Avis Budget Car Rental, LLC; Avis Budget Finance, Inc.</li><li>Guarantees: senior unsecured by Avis Budget Group, Inc. and certain U.S. subsidiaries.</li></ul>
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    <h3>Trading Thesis</h3>
    <p>Modestly bullish over 6–12 months if refinancing improves debt maturity and liquidity.</p>
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    <h2>Avis Budget Group Announces Intent to Offer $300 Million of Senior Notes (CAR)</h2>
    <p><strong>Avis Budget Group, Inc.</strong> (NASDAQ: <strong>CAR</strong>) announced on <strong>May 27, 2026</strong> from Parsippany, New Jersey that its wholly-owned subsidiaries, Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. (together, the "Issuers"), intend, subject to market and other customary conditions, to offer <strong>$300 million</strong> aggregate principal amount of additional <strong>8.000% Senior Notes due 2031</strong> (the "Notes") in a private offering. The Notes will be issued as additional notes under the Indenture, dated as of <strong>November 22, 2023</strong>, pursuant to which the Issuers previously issued <strong>$500 million</strong> aggregate principal amount of 8.000% Senior Notes due 2031. The Notes will be guaranteed on a senior unsecured basis by Avis Budget Group, Inc. and certain of its U.S. subsidiaries.</p>
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    <h3>Offering Details and Terms</h3>
    <p>The Company intends to use the net proceeds from the offering of the Notes, together with cash on hand, to redeem a portion of its <strong>5.750% Senior Notes due 2027</strong> outstanding, and pay fees and expenses in connection with the foregoing. This press release does not constitute a notice of redemption.</p>
    <ul>
      <li><strong>Aggregate principal amount:</strong> <strong>$300 million</strong></li>
      <li><strong>Notes:</strong> <strong>8.000% Senior Notes due 2031</strong></li>
      <li><strong>Existing issue:</strong> <strong>$500 million</strong> aggregate principal amount of 8.000% Senior Notes due 2031</li>
      <li><strong>Indenture date:</strong> <strong>November 22, 2023</strong></li>
      <li><strong>Guaranty:</strong> senior unsecured by Avis Budget Group, Inc. and certain U.S. subsidiaries</li>
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    <h3>Offering Eligibility and Regulatory Framework</h3>
    <p>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.</p>
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    <h3>Important Legal Disclosure</h3>
    <p>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.</p>
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    <h3>About Avis Budget Group</h3>
    <p><strong>About Avis Budget Group</strong><br></br>We are a leading global provider of mobility solutions through our three most recognized brands, Avis, Budget and Zipcar, as well as several other brands, well recognized in their respective markets. We license the use of the Avis, Budget, Zipcar and other brands' trademarks to licensees in areas in which we do not operate directly. We and our licensees operate our brands in approximately 180 countries throughout the world. Our brands and mobility solutions have an extended global reach with approximately 10,000 rental locations throughout the world. We operate most of our car rental locations in North America, Europe and Australasia. We are headquartered in Parsippany, N.J. More information is available at avisbudgetgroup.com.</p>
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    <h3>Forward-Looking Statements</h3>
    <p>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, 2025 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026. The Company undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances.</p>
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    <h3>Contact Information</h3>
    <ul>
      <li><strong>Investor Relations Contact:</strong> David Calabria, <a href="mailto:IR@avisbudget.com" rel="nofollow" target="_blank">IR@avisbudget.com</a></li>
      <li><strong>Media Relations Contact:</strong> Media Relations Team, ABGPress@coynepr.com</li>
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    <p><img alt="" src="https://www.globenewswire.com/newsroom/ti?nf=OTcyNzI4OSM3NjA4MzY2IzIwMTA0MzI="></p>
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Avis Budget Group announced a private offering of $300 million of 8.000% Senior Notes due 2031, with proceeds to redeem part of the 2027 notes and cover fees. The private sale is directed at qualified institutional buyers under Rule 144A, not registered in the U.S. The move aims to reshape the debt maturity profile, though it could raise near-term interest costs.

Avis Budget Group Announces Intention to Offer $300 Million of Senior Notes

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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