Avis Budget Group Announces Closing of $400 Million Senior Notes Offering
July 03 2019 - 10:01AM
Avis Budget Group, Inc. (NASDAQ: CAR) announced today that its
wholly-owned subsidiaries, Avis Budget Car Rental, LLC and Avis
Budget Finance, Inc., have completed an offering of $400 million
aggregate principal amount of 5.75% Senior Notes due 2027 in a
private offering.
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 newly-issued notes are guaranteed on a senior
unsecured basis by Avis Budget Group, Inc. and certain of its U.S.
subsidiaries and were issued at par.
This press release is for informational purposes only and shall
not constitute an offer to sell nor the solicitation of an offer to
buy the notes or any other securities and shall not constitute an
offer, solicitation or sale of any jurisdiction in which, or to any
person to whom, such an offer, solicitation or sale is unlawful.
Any offers of the notes were made only by means of a private
offering memorandum.
About Avis Budget Group
Avis 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 Statements
Certain 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, 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 affect 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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