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Avis Budget Group Announces Pricing Of $600 Million Of Senior Notes

1. Avis Budget Group prices $600 million senior notes offering. 2. Proceeds will be used for debt repayment and corporate purposes. 3. This offering reflects a $100 million increase from previous announcements. 4. The notes have a maturity date of June 15, 2032. 5. Offering targeted to qualified institutional buyers under specific regulations.

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Why Bullish?

The successful pricing of senior notes indicates financial stability. Historically, such offerings lead to improved liquidity and lower financing costs.

How important is it?

The note offering directly affects CAR's finances, emphasizing its efforts to manage debt effectively.

Why Short Term?

The immediate focus on debt repayment may improve financial standing quickly. However, underlying operational performance will influence longer-term effects.

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CARHERTUBERLYFT
May 14, 2025 19:28 ET  | Source: Avis Budget Group, Inc. PARSIPPANY, N.J., May 14, 2025 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) (the “Company”) announced today that its wholly-owned subsidiaries, Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. (together, the “Issuers”), priced a private offering of $600 million aggregate principal amount of 8.375% senior notes due 2032 (the “Notes”), which represents a $100 million increase from the previously announced size of the offering. The Notes will have a maturity date of June 15, 2032. The closing of the offering of the Notes is expected to occur on May 19, 2025, subject to customary closing conditions. The Notes will be issued at par and guaranteed on a senior unsecured basis by the Company and certain of its U.S. subsidiaries. The Company intends to use the net proceeds from the offering of the Notes for general corporate purposes, which may include repayment of indebtedness, including, without limitation, repayment of the Company’s floating rate term loan A maturing in December 2025 and a portion of its outstanding fleet debt, and to pay fees and expenses in connection with the foregoing. 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. 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. About Avis Budget GroupWe are a leading global provider of mobility solutions, both through our Avis and Budget brands, which have approximately 10,250 rental locations in approximately 180 countries around the world, and through our Zipcar brand, which is the world's leading car sharing network. We operate most of our car rental offices in North America, Europe and Australasia directly, and operate primarily through licensees in other parts of the world. We are headquartered in Parsippany, N.J. Forward-Looking StatementsStatements 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, 2024 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025. The Company undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances. Investor Relations Contact:David Calabria, IR@avisbudget.comMedia Relations Contact:Media Relations Team, ABGPress@edelman.com

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