PARSIPPANY, N.J. - Avis Budget (NASDAQ:CAR) Group, Inc. (NASDAQ: CAR) announced on Tuesday its plan to offer €400 million in senior notes due in 2029 through its subsidiary Avis Budget Finance plc. The offering is contingent on market conditions and other factors. The senior notes will be backed by Avis Budget Group and some of its U.S. subsidiaries.
The company aims to use the proceeds from the sale of the notes to redeem its existing 4.750% senior notes due 2026 and to cover related fees and expenses. Any remaining funds are slated for general corporate purposes, including potential debt repayment.
The notes, accompanied by guarantees, are marketed exclusively to qualified institutional buyers under Rule 144A of the Securities Act of 1933, or to non-U.S. persons outside the United States in accordance with Regulation S under the same act. The securities will not be registered under the Securities Act or any state securities laws and, therefore, cannot be offered or sold within the United States absent registration or an applicable exemption from registration requirements.
This move is part of Avis Budget Group's financial strategy, although the press release specifies that it does not serve as a notice for the redemption of the 4.750% senior notes due 2026. The private offering memorandum will detail the terms of the notes offering.
Avis Budget Group, a key player in the global mobility solutions market, operates the Avis, Budget, and Zipcar brands, with around 10,250 rental locations across roughly 180 countries. Headquartered in New Jersey, the company manages most of its rental offices directly in North America, Europe, and Australasia, while other regions are primarily operated through licensees.
The company's forward-looking statements regarding the note offering and the anticipated use of proceeds are subject to various risks and uncertainties that could cause actual outcomes to differ materially. These risks include market conditions and the company's ability to complete the offering as planned.
The information provided is based on a press release statement from Avis Budget Group, Inc.
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