Avis Budget Group Announces Pricing of €400 Million of Senior Notes

Rhea-AI Summary

Avis Budget Group, Inc. announced a private offering of €400 million aggregate principal amount of 7.25% senior notes due 2030. The offering is expected to close on July 13, 2023. The proceeds will be used to redeem outstanding senior notes due 2024 and for general corporate purposes.

PARSIPPANY, N.J., July 06, 2023 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) (the “Company”) announced today that its wholly-owned subsidiary, Avis Budget Finance plc (the “Issuer”) priced a private offering of €400 million aggregate principal amount of 7.25% senior notes due 2030 (the “Notes”). The Notes will have a maturity date of July 31, 2030. The closing of the offering of the Notes is expected to occur on July 13, 2023, subject to customary closing conditions. The Notes will be issued at par and guaranteed on a senior unsecured basis by the Company and certain of its U.S. subsidiaries.

The Company intends to use the net proceeds from the Notes offering to redeem all of the Issuer’s outstanding 4.125% senior notes due 2024 and pay fees and expenses in connection with the foregoing, with the remainder to be used for general corporate purposes, which may include, without limitation, repayment of indebtedness.

This press release does not constitute a notice of redemption of the 4.125% 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
We are a leading global provider of mobility solutions, both through our Avis and Budget brands, which have more than 10,000 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 locations 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, 2022 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023. 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 private offering?

The proceeds from the offering will be used to redeem outstanding senior notes due 2024 and for general corporate purposes.

What is the interest rate on the senior notes?

The senior notes have an interest rate of 7.25%.

When is the maturity date of the senior notes?

The senior notes will mature on July 31, 2030.

When is the expected closing date of the offering?

The offering is expected to close on July 13, 2023.

Who can participate in the offering?

The offering is available only to qualified institutional buyers and persons outside the United States who are not 'U.S. persons'.

Are the senior notes registered under the Securities Act?

No, the senior notes and related guarantees have not been and will not be registered under the Securities Act.

Is this press release an offer to buy or sell securities?

No, this press release is for informational purposes only and is not an offer to buy or sell any securities.