Avis Budget Group Announces Intention to Offer €200 Million of Senior Notes

Rhea-AI Summary

Avis Budget Group, Inc. (NASDAQ: CAR) announced its intention to offer €200 million of Senior Notes through its subsidiary, Avis Budget Finance plc, for general corporate purposes. The Notes will be issued under an existing Indenture and guaranteed by the Company and its U.S. subsidiaries. The offering will target qualified institutional buyers under Rule 144A or non-U.S. persons under Regulation S. This press release is not an offer to buy or sell securities, and the Notes have not been registered under the Securities Act.

PARSIPPANY, N.J., May 13, 2024 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) (the “Company”) announced today that its wholly-owned subsidiary, Avis Budget Finance plc (the “Issuer”), intends, subject to market and other customary conditions, to offer €200 million aggregate principal amount of additional 7.25% Senior Notes due 2030 (the “Notes”) in a private offering. The Notes will be issued as additional notes under the Indenture, dated as of July 13, 2023, pursuant to which the Issuer previously issued €400 million aggregate principal amount of 7.25% Senior Notes due 2030. 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 proceeds from the offering of the Notes for general corporate purposes, which may include repayment of indebtedness, including without limitation, 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 March 31, 2024. The Company undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Investor Relations Contact:	Media Relations Contract:
David Calabria, IR@avisbudget.com	James Tomlinson, ABGPress@edelman.com

FAQ

What is the purpose of Avis Budget Group's €200 million Senior Notes offering?

Avis Budget Group intends to offer €200 million of Senior Notes for general corporate purposes, including repayment of debt and covering fees and expenses.

Under what conditions will the Notes be issued?

The Notes will be issued subject to market and other customary conditions, targeting qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.

What is the maturity date of the Notes being offered?

The Notes being offered have a maturity date of 2030.

What entities will guarantee the Notes being offered?

The Notes will be guaranteed by Avis Budget Group, Inc. and certain of its U.S. subsidiaries on a senior unsecured basis.

Are the Notes being offered registered under the Securities Act?

No, the Notes and related guarantees have not been and will not be registered under the Securities Act or any other jurisdiction's securities laws.