Avis Budget Group Announces Intention to Offer $600 Million of Senior Notes

Rhea-AI Summary

Avis Budget Group (NASDAQ: CAR) announced a private offering of $600 million in senior notes due 2029. The offering is contingent on market conditions and will be guaranteed by the company and select subsidiaries. Proceeds will be used to redeem outstanding 10.500% senior secured notes due 2025, along with related fees. The offering complies with Rule 144A and is not open to U.S. residents except under specific exemptions. The press release serves informational purposes and does not represent a solicitation for securities.

Positive

• Intended use of proceeds to reduce debt by redeeming higher-interest senior secured notes.
• Strengthening balance sheet with new senior notes offering.

Negative

• Market conditions pose uncertainty regarding the successful completion of the offering.
• Potential risks associated with economic factors, including the ongoing impact of COVID-19.

PARSIPPANY, N.J., Feb. 17, 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 $600 million aggregate principal amount of senior notes due 2029 (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 10.500% senior secured notes due 2025 and pay related premium, fees and expenses.

This press release does not constitute a notice of redemption of the 10.500% senior secured notes due 2025.

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's recent announcement regarding senior notes?

Avis Budget Group announced a private offering of $600 million in senior notes due 2029 to redeem existing higher-interest debt.

How will Avis Budget Group use the proceeds from the senior notes offering?

The proceeds will be utilized to redeem outstanding 10.500% senior secured notes due 2025.

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

The senior notes are due in 2029 and will be guaranteed by Avis Budget Group and certain subsidiaries.

Is Avis Budget Group's senior notes offering affected by market conditions?

Yes, the offering is subject to market conditions and other customary considerations.

Who can purchase the senior notes offered by Avis Budget Group?

The notes are offered only to qualified institutional buyers under Rule 144A or outside the U.S. to non-U.S. persons.