Avis Budget Group Secures $2 Billion in New Credit Facilities

TL;DR

Avis Budget just locked in $2B in new credit, pushing debt maturities out to 2029/2031. Big refinancing win.

AI Summary

On March 12, 2024, Avis Budget Group, Inc. entered into a new credit agreement, the "2024 Credit Agreement," which amends and restates its existing credit facilities. This agreement provides for a new $1.0 billion revolving credit facility and a new $500 million term loan facility, maturing in March 2029. The company also entered into a new $500 million senior secured note facility, maturing in March 2031.

Why It Matters

This refinancing strengthens Avis Budget Group's liquidity and extends its debt maturity profile, providing financial flexibility for future operations and strategic initiatives.

Risk Assessment

Risk Level: low — The filing details a routine refinancing of credit facilities, which is generally a positive financial maneuver.

Key Numbers

• $1.0B — Revolving Credit Facility (New facility secured by Avis Budget Group)
• $500M — Term Loan Facility (New facility secured by Avis Budget Group)
• $500M — Senior Secured Note Facility (New facility secured by Avis Budget Group)
• $2.0B — Total New Credit Facilities (Combined value of new revolving credit, term loan, and note facilities)

Key Players & Entities

• Avis Budget Group, Inc. (company) — Registrant
• 2024 Credit Agreement (agreement) — New credit facility
• $1.0 billion (dollar_amount) — Revolving credit facility amount
• $500 million (dollar_amount) — Term loan facility amount
• $500 million (dollar_amount) — Senior secured note facility amount
• March 2029 (date) — Maturity date for revolving credit and term loan facilities
• March 2031 (date) — Maturity date for senior secured note facility

FAQ

Key Financial Figures

• $0.01 — h Registered Common Stock, par value $0.01 CAR The Nasdaq Global Select Market
• $400 million — (AESOP) LLC subsidiary ("ABRCF") issued $400 million of asset-backed securities with a matur
• $316.8 million — a maturity of three years, comprised of $316.8 million aggregate principal amount of Series 20
• $50.6 million — of Series 2024-2 5.13%, Class A notes, $50.6 million aggregate principal amount of Series 20
• $32.6 million — Series 2024-2 5.57%, Class B notes and $32.6 million aggregate principal amount of Series 20
• $22 million — 6.01%, Class C notes. ABRCF also issued $22 million aggregate principal amount of Series 20
• $700 million — On the Closing Date, ABRCF also issued $700 million of asset-backed securities with a matur
• $554.4 million — a maturity of five years, comprised of $554.4 million aggregate principal amount of Series 20
• $88.55 million — of Series 2024-3 5.23%, Class A notes, $88.55 million aggregate principal amount of Series 20
• $57.05 million — Series 2024-3 5.58%, Class B notes and $57.05 million aggregate principal amount of Series 20
• $38.5 million — 6.11%, Class C notes. ABRCF also issued $38.5 million aggregate principal amount of Series 20

Filing Documents

• eh240458417_8k.htm (8-K) — 29KB
• eh240458417_8k-ex1001.htm (EX-10.1) — 349KB
• eh240458417_8k-ex1002.htm (EX-10.2) — 350KB
• 0000950142-24-000731.txt ( ) — 1019KB
• car-20240312.xsd (EX-101.SCH) — 3KB
• car-20240312_lab.xml (EX-101.LAB) — 33KB
• car-20240312_pre.xml (EX-101.PRE) — 22KB
• eh240458417_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On March 12, 2024 (the "Closing Date"), our Avis Budget Rental Car Funding (AESOP) LLC subsidiary ("ABRCF") issued $400 million of asset-backed securities with a maturity of three years, comprised of $316.8 million aggregate principal amount of Series 2024-2 5.13%, Class A notes, $50.6 million aggregate principal amount of Series 2024-2 5.57%, Class B notes and $32.6 million aggregate principal amount of Series 2024-2 6.01%, Class C notes. ABRCF also issued $22 million aggregate principal amount of Series 2024-2 7.942%, 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 2024-2 Supplement, dated as of the Closing Date, between ABRCF and The Bank of New York Mellon Trust Company, N.A., as trustee and Series 2024-2 Agent (the "Series 2024-2 Supplement"), to the Second Amended and Restated Base Indenture, dated as of June 3, 2004 (as amended, the "Base Indenture"). On the Closing Date, ABRCF also issued $700 million of asset-backed securities with a maturity of five years, comprised of $554.4 million aggregate principal amount of Series 2024-3 5.23%, Class A notes, $88.55 million aggregate principal amount of Series 2024-3 5.58%, Class B notes and $57.05 million aggregate principal amount of Series 2024-3 6.11%, Class C notes. ABRCF also issued $38.5 million aggregate principal amount of Series 2024-3 8.062%, 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 2024-3 Supplement, dated as of the Closing Date, between ABRCF and The Bank of New York Mellon Trust Company, N.A., as tr

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 2024-2 Supplement, dated as of March 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 2024-2 Agent. 10.2 Series 2024-3 Supplement, dated as of March 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 2024-3 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: March 18, 2024

View Full Filing

View this 8-K filing on SEC EDGAR