Avis Budget Group Announces Pricing of $700 Million of Senior Notes
Avis Budget Group (NASDAQ: CAR) announced the pricing of a $700 million private offering of 8.250% senior notes due 2030, representing a $200 million increase from the initially announced size. The notes, to be issued by Avis Budget Car Rental, and Avis Budget Finance, Inc., will mature on January 15, 2030, and will be guaranteed by the Company and certain U.S. subsidiaries. The offering is expected to close on September 13, 2024.
The Company plans to use the net proceeds for general corporate purposes, including potential repayment of indebtedness such as its floating rate term loan C maturing in 2029 and outstanding fleet debt. The notes are being offered only to qualified institutional buyers and non-U.S. persons, and have not been registered under the Securities Act.
Avis Budget Group (NASDAQ: CAR) ha annunciato la determinazione del prezzo di un
La Società prevede di utilizzare i proventi netti per scopi aziendali generali, inclusa la potenziale restituzione di debiti come ad esempio il suo prestito a tasso variabile C in scadenza nel 2029 e il debito della flotta in essere. Le note sono offerte solo a compratori istituzionali qualificati e persone non statunitensi, e non sono state registrate ai sensi della Securities Act.
Avis Budget Group (NASDAQ: CAR) anunció el precio de una oferta privada de 700 millones de dólares de bonos senior al 8.250% con vencimiento en 2030, lo que representa un aumento de 200 millones de dólares respecto al tamaño anunciado inicialmente. Los bonos, que serán emitidos por Avis Budget Car Rental y Avis Budget Finance, Inc., vencerán el 15 de enero de 2030 y estarán garantizados por la Compañía y algunas subsidiarias en EE. UU. Se espera que la oferta se cierre el 13 de septiembre de 2024.
La Compañía planea utilizar los ingresos netos para fines corporativos generales, incluida la posible reembolsación de deudas como su préstamo a tipo de interés variable C que vence en 2029 y la deuda de la flota pendiente. Los bonos se ofrecen solo a compradores institucionales calificados y personas no estadounidenses, y no han sido registrados bajo la Ley de Valores.
아비스 버짓 그룹(NASDAQ: CAR)이 2030년 만기 8.250% 선급권 채권 7억 달러의 사모 공모 가격을 발표했습니다. 이는 초기 발표된 규모에서 2억 달러 증액된 금액입니다. 이 채권은 아비스 버짓 카 렌탈과 아비스 버짓 파이낸스, Inc.가 발행하며 2030년 1월 15일에 만기됩니다. 이 채권은 회사와 일부 미국 자회사가 보증합니다. 이 공모는 2024년 9월 13일에 마감될 것으로 예상됩니다.
회사는 일반 기업 목적을 위해, 잠재적인 부채 상환 포함하여 순수익을 사용할 계획입니다. 2029년에 만기되는 변동 금리 대출 C와 미지급 플릿 채무가 이에 해당합니다. 이 채권은 자격을 갖춘 기관 투자자와 비미국인에게만 제공되며, 증권법에 따라 등록되지 않았습니다.
Avis Budget Group (NASDAQ: CAR) a annoncé le prix d'une offre privée de 700 millions de dollars de notes senior à 8,250% arrivant à échéance en 2030, représentant une augmentation de 200 millions de dollars par rapport à la taille initialement annoncée. Les notes, qui seront émises par Avis Budget Car Rental et Avis Budget Finance, Inc., arriveront à échéance le 15 janvier 2030 et seront garanties par la société et certaines filiales américaines. Il est prévu que l'offre se clôture le 13 septembre 2024.
La société prévoit d'utiliser les produits nets à des fins commerciales générales, y compris le remboursement potentiel de dettes telles que son prêt à taux variable C venant à échéance en 2029 et la dette de flotte en cours. Les notes ne sont proposées qu'à des acheteurs institutionnels qualifiés et à des personnes non américaines, et n'ont pas été enregistrées en vertu de la Securities Act.
Avis Budget Group (NASDAQ: CAR) gab die Preisgestaltung für ein 700-Millionen-Dollar Private Placement von 8,250%-Schuldverschreibungen mit Fälligkeit 2030 bekannt, was eine Erhöhung um 200 Millionen Dollar gegenüber der ursprünglich angekündigten Größe darstellt. Die Schuldverschreibungen, die von Avis Budget Car Rental und Avis Budget Finance, Inc. ausgegeben werden, laufen am 15. Januar 2030 ab und werden von der Gesellschaft und bestimmten US-Tochtergesellschaften garantiert. Es wird erwartet, dass das Angebot am 13. September 2024 abgeschlossen wird.
Das Unternehmen plant, die Nettoerlöse für allgemeine Unternehmenszwecke, einschließlich möglicher Rückzahlung von Schulden zu verwenden, wie zum Beispiel seinen im Jahr 2029 fälligen variabel verzinsten Terminkredit C und ausstehende Flottenschulden. Die Schuldverschreibungen werden nur an qualifizierte institutionelle Käufer und Nicht-US-Personen angeboten und wurden nicht nach dem Wertpapiergesetz registriert.
- Successful pricing of $700 million senior notes offering
- Increased offering size by $200 million from initial announcement
- Potential reduction of existing debt, including floating rate term loan and fleet debt
- Increased long-term debt with 8.250% interest rate
- Potential dilution of existing shareholders' equity
Insights
Avis Budget Group's $700 million senior notes offering is a significant move that could reshape its debt structure. The 8.250% interest rate and 2030 maturity suggest a long-term strategy to secure funding at a fixed rate, potentially hedging against future interest rate hikes. The
This debt offering by Avis Budget Group comes at a important time in the car rental market. The industry has been experiencing a post-pandemic rebound, with increased travel demand driving higher rental rates and utilization. However, challenges persist, including inflationary pressures on vehicle acquisition costs and potential economic headwinds. The successful placement of these notes suggests investor confidence in Avis's ability to navigate these challenges. The company's focus on refinancing, particularly the potential repayment of fleet debt, could provide greater operational flexibility in managing its vehicle fleet – a critical aspect of its business model. Investors should monitor how this financial maneuver impacts Avis's competitive position against rivals like Hertz and Enterprise, especially in terms of fleet modernization and expansion capabilities.
The structure of this offering as a private placement to qualified institutional buyers under Rule 144A and Regulation S is a common approach for expedited fundraising. It allows Avis to avoid the more time-consuming and costly process of a public offering. However, this limits the initial investor base and secondary market liquidity. The explicit statement that the notes are not registered under the Securities Act is important for potential investors to understand the resale restrictions. The company's emphasis on the informational nature of the press release and the disclaimer regarding offers or solicitations demonstrate careful compliance with securities regulations. Investors should be aware that while this approach offers flexibility to the company, it also means less regulatory oversight compared to a public offering, potentially impacting transparency and investor protections.
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”), priced a private offering of
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: David Calabria, IR@avisbudget.com | Media Relations Contact: James Tomlinson, ABGPress@edelman.com | |
FAQ
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