Budget Secures Fleet Financing, Continues European Reorganization

Budget Group Inc. has secured a $350 million asset-backed financing facility to acquire more vehicles during its peak rental season.

Earlier this year, Budget received an amendment to its revolving credit facility used to finance its fleet. The amendment restored credit availability up to $550 million.

Budget is also undertaking a placement of $400 million of asset-backed medium term notes. The company said it expects the placement to be completed in mid-April. These and other fleet financing measures will replace debt that matures over the next several months.

Budget also recently completed the sale of its Birmingham and Manchester locations in England to a franchisee, and refranchised nearly all of its corporate French locations.

Budget Rent a Car International said it has negotiated agreements with a number of investors, nearly all of whom are current Budget franchisees. When the transactions close in April and May, this will transform France into a 90% franchised operation, Budget said.

“This restructuring program mirrors what we have already implemented in the U.K. and are now starting in other European corporate locations,” said Jack Frazee, president and chief operating officer of Budget Rent a Car International. “The investors we have secured for the expanded regional franchises were se-lected on the basis of their industry expertise, local market knowledge and strong focus on high levels of customer service.”

Meanwhile, Budget will retain corporate control of select locations at the Paris and Nice gateway airports, as well as Paris railway stations and downtown locations.

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Job Finder: Access Top Talent. Fill Key Positions.