Avis Budget Group Announces Intention to Offer $400 Million of Senior Notes
June 19 2019 - 8:56AM
Avis Budget Group, Inc. (NASDAQ: CAR) announced today that its
wholly-owned subsidiaries, Avis Budget Car Rental, LLC and Avis
Budget Finance, Inc., intend, subject to market and other customary
conditions, to offer $400 million aggregate principal amount of
senior notes due 2027 in a private offering. The notes will be
guaranteed on a senior unsecured basis by Avis Budget Group, Inc.
and certain of its U.S. subsidiaries.
Avis Budget Group intends to use the net proceeds from the notes
offering, together with cash on hand, to redeem a portion of its
outstanding 5.50% Senior Notes due 2023 and pay related fees and
expenses, with any remainder to be used for general corporate
purposes.
The notes and related guarantees are being offered only to
qualified institutional buyers in reliance on Rule 144A under the
Securities Act of 1933, as amended 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 GroupAvis
Budget Group, Inc. is a leading global provider of mobility
solutions, both through its Avis and Budget brands, which have more
than 11,000 rental locations in approximately 180 countries around
the world, and through its Zipcar brand, which is the world's
leading car sharing network, with more than one million members.
Avis Budget Group operates most of its car rental offices in North
America, Europe and Australasia directly, and operates primarily
through licensees in other parts of the world. Avis Budget Group
has approximately 30,000 employees and is headquartered in
Parsippany, N.J. More information is available at
www.avisbudgetgroup.com.
Forward-Looking
StatementsCertain statements in this press
release constitute “forward-looking statements.” Any statements
that refer to outlook, expectations or other characterizations of
future events, circumstances or results are forward-looking
statements. Various risks that could cause future results to differ
from those expressed by the forward-looking statements included in
this press release include, but are not limited to, the anticipated
use of the proceeds from the offering and the Company’s intention
to consummate the offering, the high level of competition in the
mobility industry, changes in our fleet costs as a result of a
change in the cost of new vehicles, manufacturer recalls and/or the
value of used vehicles, disruption in the supply of new vehicles,
disposition of vehicles not covered by manufacturer repurchase
programs, the financial condition of the manufacturers that supply
our rental vehicles which could effect their ability to perform
their obligations under our repurchase and/or guaranteed
depreciation arrangements, any change in economic conditions
generally, particularly during our peak season and/or in key market
segments, any change in travel demand, including changes in airline
passenger traffic, any occurrence or threat of terrorism, any
changes to the cost or supply of fuel, risks related to
acquisitions or integration of acquired businesses, risks
associated with litigation, governmental or regulatory inquiries or
investigations, risks related to the security of our information
technology systems, disruptions in our communication networks,
changes in tax or other regulations, a significant increase in
interest rates or borrowing costs, our ability to obtain financing
for our global operations, including the funding of our vehicle
fleet via asset-backed securities markets, any fluctuations related
to the mark-to-market of derivatives which hedge our exposure to
exchange rates, interest rates and fuel costs, our ability to meet
the covenants contained in the agreements governing our
indebtedness, and our ability to accurately estimate our future
results and implement our strategy for growth and cost savings.
Other unknown or unpredictable factors could also have material
adverse effects on the Company’s performance or achievements.
Important assumptions and other important factors that could cause
actual results to differ materially from those in the
forward-looking statements are specified in Avis Budget Group’s
Annual Report on Form 10-K for the year ended December 31, 2018 and
in other filings and furnishings made by the Company with the
Securities and Exchange Commission from time to time. The Company
undertakes no obligation to publicly update any forward-looking
statements to reflect subsequent events of circumstances.
Contacts
Media Contact:
Katie McCall
(973) 496-2072
PR@avisbudget.com
Investor Contact:
Matthew Flaherty
(973) 496-3906
IR@avisbudget.com
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