Avis Budget Group Reports Material Agreement & New Obligation

TL;DR

**Avis Budget Group just took on a new financial obligation, but the 8-K is light on details.**

AI Summary

Avis Budget Group, Inc. filed an 8-K on January 18, 2024, reporting an event that occurred on January 12, 2024, related to entering a material definitive agreement and creating a direct financial obligation. While the filing confirms these events, it does not disclose the specific details or dollar amounts of the agreement or obligation. This matters to investors because without the specifics, it's impossible to assess the potential financial impact, positive or negative, on Avis Budget Group's stock.

Why It Matters

This filing signals a new financial commitment for Avis Budget Group, but the lack of specific details means investors are left in the dark about its potential impact on the company's financial health and future performance.

Risk Assessment

Risk Level: medium — The risk is medium because a material definitive agreement and a new financial obligation could significantly impact the company, but the absence of specific details prevents a full assessment of the nature or magnitude of this impact.

Analyst Insight

A smart investor would await further disclosures from Avis Budget Group, Inc. regarding the specifics of the material agreement and financial obligation to properly assess their financial implications before making any investment decisions.

Key Players & Entities

• Avis Budget Group, Inc. (company) — the registrant filing the 8-K
• January 12, 2024 (date) — date of the earliest event reported
• January 18, 2024 (date) — date the 8-K was filed

FAQ

Key Financial Figures

• $0.01 — h Registered Common Stock, par value $0.01 CAR The Nasdaq Global Select Market
• $1.2 billion — (AESOP) LLC subsidiary ("ABRCF") issued $1.2 billion of asset-backed securities with a matur
• $950.4 million — a maturity of five years, comprised of $950.4 million aggregate principal amount of Series 20
• $151.8 million — of Series 2024-1 5.36%, Class A notes, $151.8 million aggregate principal amount of Series 20
• $97.8 million — Series 2024-1 5.85%, Class B notes and $97.8 million aggregate principal amount of Series 20
• $66 million — 6.48%, Class C notes. ABRCF also issued $66 million aggregate principal amount of Series 20
• $400 million — ill be reduced on February 28, 2024, by $400 million to $3.21 billion in the case of the Ser
• $3.21 billion — n February 28, 2024, by $400 million to $3.21 billion in the case of the Series 2010-6 Notes
• $100 million — he Series 2010-6 Notes facility, and by $100 million to $279.3 million in the case of the Se
• $279.3 million — Notes facility, and by $100 million to $279.3 million in the case of the Series 2015-3 facili

Filing Documents

• eh240438620_8k.htm (8-K) — 30KB
• eh240438620_ex1001.htm (EX-10.1) — 362KB
• eh240438620_ex1002.htm (EX-10.2) — 124KB
• eh240438620_ex1003.htm (EX-10.3) — 43KB
• 0000950142-24-000165.txt ( ) — 806KB
• car-20240112.xsd (EX-101.SCH) — 3KB
• car-20240112_lab.xml (EX-101.LAB) — 33KB
• car-20240112_pre.xml (EX-101.PRE) — 22KB
• eh240438620_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On January 12, 2024 (the "Closing Date"), our Avis Budget Rental Car Funding (AESOP) LLC subsidiary ("ABRCF") issued $1.2 billion of asset-backed securities with a maturity of five years, comprised of $950.4 million aggregate principal amount of Series 2024-1 5.36%, Class A notes, $151.8 million aggregate principal amount of Series 2024-1 5.85%, Class B notes and $97.8 million aggregate principal amount of Series 2024-1 6.48%, Class C notes. ABRCF also issued $66 million aggregate principal amount of Series 2024-1 8.427%, Class R notes, which are subordinated to the Class A notes, the Class B notes and the Class C notes and were issued to comply with applicable U.S. risk retention rules. The Class R notes are held by our AESOP Leasing L.P. subsidiary. The notes were issued under the Series 2024-1 Supplement, dated as of the Closing Date, between ABRCF and The Bank of New York Mellon Trust Company, N.A., as trustee and Series 2024-1 Agent (the "Series 2024-1 Supplement"), to the Second Amended and Restated Base Indenture, dated as of June 3, 2004 (as amended, the "Base Indenture"). Additionally, on January 12, 2024, ABRCF completed an amendment of its asset-backed variable-funding financing facilities, which provide a portion of the financing for our car rental fleet in the United States. This financing is primarily comprised of the Series 2010-6 Notes facility and the Series 2015-3 Notes facility, and the notes are secured primarily by vehicles in our domestic fleet and other related assets. Pursuant to the amendments, the aggregate principal amounts of each facility will be reduced on February 28, 2024, by $400 million to $3.21 billion in the case of the Series 2010-6 Notes facility, and by $100 million to $279.3 million in the case of the Series 2015-3 facility. The notes are secured under the Base Indenture by vehicles in our domestic fleet and other related assets. The foregoing summary of the notes is qu

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. The following exhibits are filed as part of this report: Exhibit No. Description 10.1 Series 2024-1 Supplement, dated as of January 12, 2024, between Avis Budget Rental Car Funding (AESOP) LLC and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2024-1 Agent. 10.2 Fourth Amendment to Fifth Amended and Restated Series 2010-6 Supplement, dated as of January 12, 2024, by and among Avis Budget Rental Car Funding (AESOP) LLC, as Issuer, Avis Budget Car Rental, LLC, as Administrator, JPMorgan Chase Bank, N.A., as Administrative Agent, the Non-Conduit Purchasers, the CP Conduit Purchasers, the Committed Note Purchasers, the APA Banks and the Funding Agents named therein and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2010-6 Agent. 10.3 Fourth Amendment to Third Amended and Restated Series 2015-3 Supplement, dated as of January 12, 2024, by and among Avis Budget Rental Car Funding (AESOP) LLC, as Issuer, Avis Budget Car Rental, LLC, as Administrator, JPMorgan Chase Bank, N.A., as Administrative Agent, the Non-Conduit Purchasers, the CP Conduit Purchasers, the Committed Note Purchasers, the APA Banks and the Funding Agents named therein and The Bank of New York Mellon Trust Company, N.A., as trustee and as Series 2015-3 Agent. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized. AVIS BUDGET GROUP, INC. By: /s/ Jean M. Sera Name: Jean M. Sera Title: Senior Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary Date: January 18, 2024

View Full Filing

View this 8-K filing on SEC EDGAR