Avis Budget Group Announces Intention to Offer $500 Million of Senior Notes
Avis Budget Group (NASDAQ: CAR) has announced its intention to offer $500 million in senior notes due 2030 through its subsidiaries, Avis Budget Car Rental, and Avis Budget Finance, Inc. The notes will be guaranteed on a senior unsecured basis by Avis Budget Group and certain U.S. subsidiaries. The company plans to use the net proceeds for general corporate purposes, including potential repayment of existing debt such as its floating rate term loan C maturing in 2029 and outstanding fleet debt. The offering is subject to market and other customary conditions and is to qualified institutional buyers and non-U.S. persons in compliance with SEC regulations.
Avis Budget Group (NASDAQ: CAR) ha annunciato la sua intenzione di offrire 500 milioni di dollari in note senior con scadenza nel 2030 attraverso le sue controllate, Avis Budget Car Rental e Avis Budget Finance, Inc. Le note saranno garantite su base senior non garantita da Avis Budget Group e da alcune sussidiarie statunitensi. La società prevede di utilizzare il rimborso netto per scopi aziendali generali, compreso il potenziale rimborso di debiti esistenti come il suo prestito a termine a tasso variabile C in scadenza nel 2029 e debito della flotta in essere. L'offerta è soggetta a condizioni di mercato e altre condizioni abituali ed è destinata agli acquirenti istituzionali qualificati e a persone non statunitensi in conformità alle normative della SEC.
Avis Budget Group (NASDAQ: CAR) ha anunciado su intención de ofrecer 500 millones de dólares en notas senior con vencimiento en 2030 a través de sus filiales, Avis Budget Car Rental y Avis Budget Finance, Inc. Las notas estarán garantizadas de manera no asegurada por Avis Budget Group y ciertas subsidiarias estadounidenses. La compañía planea usar los ingresos netos para propósitos corporativos generales, incluyendo el posible reembolso de la deuda existente, como su préstamo a término a tasa variable C que vence en 2029 y deuda de flota pendiente. La oferta está sujeta a condiciones del mercado y otras condiciones habituales y está destinada a compradores institucionales calificados y personas no estadounidenses en cumplimiento con las regulaciones de la SEC.
Avis Budget Group (NASDAQ: CAR)은 자회사인 Avis Budget Car Rental 및 Avis Budget Finance, Inc.를 통해 2023년 만기 5억 달러의 선순위 채권을 발행할 계획이라고 발표했습니다. 이 채권은 Avis Budget Group과 일부 미국 자회사의 무담보 선순위 보증이 제공됩니다. 회사는 순수익을 일반 기업 목적에 사용할 계획이며, 여기에는 2029년에 만기가 도래하는 변동 금리 상환 대출 C 및 미결제 차량 대출의 잠재적 상환이 포함됩니다. 이 제안은 시장 및 기타 관행적 조건에 따라 실시되며, SEC 규정을 준수하는 자격 있는 기관 구매자 및 비미국인을 대상으로 합니다.
Avis Budget Group (NASDAQ: CAR) a annoncé son intention d'offrir 500 millions de dollars en obligations senior arrivant à échéance en 2030 par l'intermédiaire de ses filiales, Avis Budget Car Rental et Avis Budget Finance, Inc. Les obligations seront garanties sur une base senior non sécurisée par Avis Budget Group et certaines filiales américaines. La société prévoit d'utiliser le produit net à des fins d'entreprise générales, y compris le remboursement potentiel de dettes existantes telles que son prêt à taux variable C arrivant à échéance en 2029 et la dette de flotte en cours. L'offre est soumise aux conditions du marché et à d'autres conditions habituelles et est destinée aux acheteurs institutionnels qualifiés et aux personnes non américaines conformément aux réglementations de la SEC.
Avis Budget Group (NASDAQ: CAR) hat seine Absicht angekündigt, 500 Millionen Dollar an Senior Notes mit Fälligkeit im Jahr 2030 über seine Tochtergesellschaften Avis Budget Car Rental und Avis Budget Finance, Inc. anzubieten. Die Anleihen werden auf ungesicherte Senior-Basis von Avis Budget Group und einigen US-Tochtergesellschaften garantiert. Das Unternehmen plant, den Nettoerlös für allgemeine Unternehmenszwecke zu verwenden, einschließlich der möglichen Rückzahlung bestehender Schulden, wie z.B. seinem variabel verzinsten Terminkredit C, der 2029 fällig wird, und ausstehenden Flottenverbindlichkeiten. Das Angebot unterliegt Marktbedingungen und anderen üblichen Bedingungen und richtet sich an qualifizierte institutionelle Käufer und nicht-US-Personen in Übereinstimmung mit den Vorschriften der SEC.
- Potential to raise $500 million in new capital
- Opportunity to refinance existing debt, potentially improving financial structure
- Flexibility in use of proceeds for general corporate purposes
- Increase in overall debt levels
- Potential increase in interest expenses depending on the new notes' terms
Insights
Avis Budget Group's intention to offer
However, investors should note that this move will increase the company's overall debt load. The impact on Avis's credit profile and leverage ratios will depend on how the proceeds are ultimately used. If a significant portion goes towards repaying existing debt, the net effect on the balance sheet may be neutral. The market's reception of this offering will be crucial, as it will reflect investor confidence in Avis's financial health and future prospects in the competitive car rental industry.
This debt offering by Avis Budget Group comes at a time when the car rental industry is navigating post-pandemic recovery and evolving travel trends. The company's ability to secure
However, the timing is intriguing given the current high-interest rate environment. This suggests Avis may be anticipating future challenges or opportunities that require additional capital. Investors should watch for how this capital is deployed – whether it's used defensively to shore up the balance sheet or offensively to fund growth initiatives or fleet expansion. The offering's success and the interest rate secured will be key indicators of the market's assessment of Avis's credit quality and the overall health of the car rental sector.
PARSIPPANY, N.J., Sept. 10, 2024 (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
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 its floating rate term loan C maturing in 2029 and 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 Group
We 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 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 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, 2023 and Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024. The Company undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances.
| Investor Relations Contact: | Media Relations Contact: |
| David Calabria, IR@avisbudget.com | James Tomlinson, ABGPress@edelman.com |
FAQ
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