Pentwater funds trim Avis Budget (NASDAQ: CAR) call option exposure
Rhea-AI Filing Summary
Pentwater-managed funds reported derivative sales tied to Avis Budget Group. A group of investment funds advised by Pentwater Capital Management LP filed an amended Form 4 describing open-market sales of 444 call option contracts, each representing an obligation to sell Avis common stock at specified strike prices.
The options, all expiring on May 15, 2026, have strike prices of $400, $360, $350 and $340 per share and were sold at premiums ranging from $19.68 to $24.08 per option. The trades are attributed to entities including Pentwater Merger Arbitrage Master Fund Ltd., Pentwater Equity Opportunities Master Fund Ltd., Pentwater Credit Master Fund Ltd., Oceana Master Fund Ltd., LMA SPC MAP 98 Segregated Portfolio and Crown Managed Accounts SPC.
The filing amends and restates prior footnotes and states that the reporting persons disclaim beneficial ownership beyond their pecuniary interest. It also notes they are in discussions with Avis Budget Group and will voluntarily pay any realized short swing profits to the extent required under Section 16(b).
Positive
- None.
Negative
- None.
Insights
Pentwater-advised funds sold call options on Avis shares and clarified Section 16(b) treatment.
Several funds advised by Pentwater Capital Management LP, all ten percent owners of Avis Budget Group, reported selling 444 call option contracts expiring on May 15, 2026. These derivatives obligate the funds to sell Avis common stock at strike prices from $340 to $400 per share in exchange for option premiums around $19.68–$24.08 per contract.
The amendment focuses on restating footnotes to attribute trades to specific funds and to clarify that Pentwater and Matthew Halbower disclaim beneficial ownership beyond their pecuniary interests. It also states they are in discussions with the issuer and will voluntarily pay any realized short swing profits under Section 16(b) if required, suggesting a compliance-driven adjustment rather than a change in fundamental outlook.
Because the filing does not show the funds’ total Avis exposure or remaining derivatives, it is hard to gauge portfolio-level impact from these trades alone. The visible data mainly highlights derivative positioning and an effort to align insider reporting and potential short-swing profit treatment with regulatory requirements.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Call Option (obligation to sell) | 1 | $24.08 | $24.08 |
| Sale | Call Option (obligation to sell) | 7 | $24.08 | $168.56 |
| Sale | Call Option (obligation to sell) | 4 | $24.08 | $96.32 |
| Sale | Call Option (obligation to sell) | 32 | $24.08 | $770.56 |
| Sale | Call Option (obligation to sell) | 5 | $21.33 | $106.65 |
| Sale | Call Option (obligation to sell) | 1 | $21.33 | $21.33 |
| Sale | Call Option (obligation to sell) | 7 | $21.33 | $149.31 |
| Sale | Call Option (obligation to sell) | 4 | $21.33 | $85.32 |
| Sale | Call Option (obligation to sell) | 33 | $21.33 | $703.89 |
| Sale | Call Option (obligation to sell) | 5 | $19.68 | $98.40 |
| Sale | Call Option (obligation to sell) | 1 | $19.68 | $19.68 |
| Sale | Call Option (obligation to sell) | 1 | $19.68 | $19.68 |
| Sale | Call Option (obligation to sell) | 7 | $19.68 | $137.76 |
| Sale | Call Option (obligation to sell) | 4 | $19.68 | $78.72 |
| Sale | Call Option (obligation to sell) | 32 | $19.68 | $629.76 |
| Sale | Call Option (obligation to sell) | 30 | $22.54 | $676.20 |
| Sale | Call Option (obligation to sell) | 6 | $22.54 | $135.24 |
| Sale | Call Option (obligation to sell) | 5 | $22.54 | $112.70 |
| Sale | Call Option (obligation to sell) | 42 | $22.54 | $946.68 |
| Sale | Call Option (obligation to sell) | 24 | $22.54 | $540.96 |
| Sale | Call Option (obligation to sell) | 193 | $22.54 | $4K |
Footnotes (1)
- This Form 4/A is filed by Pentwater Capital Management LP ("PCM") and Matthew Halbower ("Mr. Halbower") (collectively, the "Reporting Persons") with respect to securities held by certain funds (the "Pentwater Funds"), including the funds named herein, to which PCM serves as investment adviser. Mr. Halbower is the sole shareholder of MCH PWCM Holdings Inc., the general partner of PCM. Each of the foregoing disclaims beneficial ownership in the securities reported except to the extent of its or his pecuniary interest, if any, therein, and this report shall not be deemed to be an admission that such person is the beneficial owner of such securities for purposes of Section 16 or for any other purpose. The Reporting Persons are in discussions with the Issuer and, to the extent required pursuant to Section 16(b), will voluntarily pay any realized short swing profits. The Reporting Persons are filing this Form 4/A solely to amend and restate footnotes 2-8 of the Form 4 as follows. Trades by Oceana Master Fund Ltd. Trades by Pentwater Credit Master Fund Ltd. Trades by LMA SPC for and on behalf of the MAP 98 Segregated Portfolio. Trades by Pentwater Equity Opportunities Master Fund Ltd. Trades by Crown Managed Accounts SPC acting for and on behalf of Crown/PW Segregated Portfolio. Trades by Pentwater Merger Arbitrage Master Fund Ltd. Exercisable at any time.
Key Figures
Key Terms
call option (obligation to sell) financial
short swing profits regulatory
Section 16(b) regulatory
pecuniary interest financial
ten percent owner regulatory
