Avis Budget Group Announces Intention to Offer $350 Million of Senior Notes
August 03 2020 - 7:08AM
Avis Budget Group, Inc. (NASDAQ: CAR) (the “Company”) announced
today that its wholly-owned subsidiaries, Avis Budget Car Rental,
LLC and Avis Budget Finance, Inc. (together, the “Issuers”),
intend, subject to market and other customary conditions, to offer
$350 million aggregate principal amount of 5.75% senior notes due
2027 (the “Notes”) in a private offering. The Notes are being
offered as additional notes under the Indenture, dated as of July
3, 2019, pursuant to which the Issuers previously issued $400
million aggregate principal amount of 5.75% Senior Notes due 2027.
The Notes will be guaranteed on a senior
unsecured basis by Avis Budget Group, Inc. and certain of its U.S.
subsidiaries.
The Company intends to use the net proceeds from
the Notes offering to redeem the outstanding $100 million in
aggregate principal amount of the Issuers’ 5.50% Senior Notes due
2023, with the remainder to be used for general corporate
purposes.
The Notes and related guarantees are being
offered only to persons reasonably believed to be qualified
institutional buyers in reliance on Rule 144A under the Securities
Act of 1933, as amended (the “Securities Act”), 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 is headquartered in Parsippany,
N.J.
Forward-Looking
StatementsStatements regarding the Notes offering
and the expected use of proceeds therefrom are “forward-looking
statements” and are subject to known and unknown risks and
uncertainties that may cause actual results to differ materially
from those expressed in such forward-looking statements. These
risks and uncertainties include, but are not limited to, the
ability to complete the offering on favorable terms, if at all, and
general market conditions (including the COVID-19 pandemic and
related economic impact) which might affect the offering.
Additional information concerning these and other important risks
and uncertainties can be found in the Company's filings with the
Securities and Exchange Commission, including under the captions
“Forward-Looking Statements” and “Risk Factors” in the Company's
Annual Report on Form 10-K for the year ended December 31, 2019 and
Quarterly Report on Form 10-Q for the period ended June 30, 2020.
The company undertakes no obligation to update any forward-looking
statements to reflect subsequent events or circumstances.
ContactDavid Calabria:
IR@avisbudget.com PR@avisbudget.com
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