Avis Budget Sells $50 Million Notes
The company intends to use the offering to help repay debt on its floating rate term loan, which has an effective interest rate of approximately 9.2 percent.
Avis Budget Car Rental LLC sold $450 million of senior notes in the 144a private placement market on March 5, said IFR, a Thomson Reuters service.
The size of the deal was increased from an originally planned $400 million.
Bank of America Merrill Lynch, Barclays Capital, Citigroup, Deutsche Bank, JP Morgan and Wells Fargo were the joint bookrunning managers for the sale.
Avis said it intends to use the net proceeds of the offering for general corporate purposes and to help repay debt on its floating rate term loan, which has an effective interest rate of approximately 9.2 percent.
As a result of the sale, Moody’s Investors Service raised the car rental company’s ratings. Moody’s said the changes related to its expectation that the company would close its offering of senior unsecured notes on the same day it announced the sale.
Moody's raised Avis's senior secured credit facility rating to "Ba2" from "Ba3" and its senior unsecured debt rating to "B3" from "Caa1."
The ratings service reiterated its "B2" corporate family and probability of default ratings, and set a "B3" rating for Avis' issuance of $400 million in senior unsecured notes.
Moody's said its ratings outlook for Avis is still "Positive."
More Rental Operations
Direct, Broker or Hybrid? How Travel Retailers Source Rental Cars
As travel retailers weigh direct supplier relationships against third-party distribution, rental operators need to understand how those decisions affect their business.
Read More →
How Did This Independent Rental Operator Grow to 170 Vehicles in 4 Years?
With 170 vehicles across three Kentucky locations, Joel Price relies on an overseas team to handle reservations, payments, and after-hours customer service. It's one part of an unconventional approach to growing an independent rental operation.
Read More →
What Does It Take to Succeed in B2B Rentals?
The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.
Read More →
NPR Builds on International Partnerships to Grow Rental Bookings
With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.
Read More →
Advantage, Sixt Place Among Top Five in Annual Satisfaction Study
While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.
Read More →
The $100,000 Insurance Trap in Exotic Car Rentals
Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.
Read More →
The Booking Is Confirmed, But Is Your Customer Ready to Drive?
For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.
Read More →
ICRS 2027 Opens Call for Papers
The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.
Read More →
Turo to Launch Vehicle Delivery Service
Turo Delivered will let travelers search for vehicles that hosts can deliver directly to hotels, homes, airports, train stations, and other locations.
Read More →
Palm Beach Airport Code Change Creates Car Rental Distribution Gap
A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.
Read More →