Avis Budget Group Announces Intention to Offer $350 Million of Senior Notes

Rhea-AI Summary

Avis Budget Group (NASDAQ: CAR) announced its intention to offer $350 million in senior notes due 2028 via its subsidiaries, Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. The net proceeds will be used to redeem existing 6.375% senior notes due 2024 and cover related expenses. This offering is targeted at qualified institutional buyers under Rule 144A of the Securities Act. The Notes and guarantees are unregistered and cannot be sold in the U.S. without exemption. The company faces uncertainties that could impact the offering due to market conditions and the COVID-19 pandemic.

Positive

• The offering of $350 million in senior notes could strengthen financial stability.
• The redemption of higher-interest 6.375% senior notes may reduce interest expenses.

Negative

• The offering's ability to complete on favorable terms is uncertain.
• Market conditions, including COVID-19's economic impact, could adversely affect the offering.

PARSIPPANY, N.J., March 09, 2021 (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”), intend, subject to market and other customary conditions, to offer $350 million aggregate principal amount of senior notes due 2028 (the “Notes”) in a private offering. The Notes will be guaranteed on a senior unsecured basis by Avis Budget Group, Inc. and certain of its U.S. subsidiaries.

The Company intends to use the net proceeds from the Notes offering, together with cash on hand, to redeem all of the Issuers’ outstanding 6.375% senior notes due 2024 and pay related fees and expenses.

This press release does not constitute a notice of redemption of the 6.375% senior notes due 2024.

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 Group
Avis Budget Group, Inc. is a leading global provider of mobility solutions, both through its Avis and Budget brands, which have more than 10,000 rental locations in approximately 180 countries around the world, and through its Zipcar brand, which is the world's leading car sharing network, with more than one million members. Avis Budget Group operates most of its car rental offices in North America, Europe and Australasia directly, and operates primarily through licensees in other parts of the world. Avis Budget Group is headquartered in Parsippany, N.J.

Forward-Looking Statements
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 (including the COVID-19 pandemic and related economic impact) 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, 2020. The Company undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Contact
David Calabria
IR@avisbudget.com
PR@avisbudget.com

FAQ

What is Avis Budget Group planning with the $350 million senior notes offering?

Avis Budget Group intends to use the $350 million from the senior notes offering to redeem existing 6.375% senior notes due 2024 and to pay related expenses.

What are the terms of the senior notes being offered by Avis Budget Group?

The senior notes being offered are due in 2028 and will be guaranteed on a senior unsecured basis by Avis Budget Group and certain U.S. subsidiaries.

How does the senior notes offering affect Avis Budget Group's existing debt?

The offering will be used to redeem the existing senior notes due 2024, which have a 6.375% interest rate, potentially lowering future interest expenses.

What risks are associated with Avis Budget Group's senior notes offering?

Risks include the uncertainty of completing the offering on favorable terms and impacts from general market conditions, particularly due to the COVID-19 pandemic.