Avis Budget Group
Avis Budget Group is a Parsippany-Troy Hills, New Jersey-based company founded in 1946 by Henry Silverman.
Key facts
| CAGE Code | 1J9S1 |
|---|---|
| Legal Name | Avis Budget Group, Inc. |
| Company Operating Status | Active |
| Full Address | 6 SYLVAN WAY PARSIPPANY, NJ 07054 UNITED STATES |
| Legal Entity Identifier | 529900E95812SYWMCE44 |
| Stock Symbol | CAR |
| Ticker Symbol | CAR |
| Wellfound ID | avis-budget-group |
| Wikidata ID | Q2874395 |
Capital structure
$1.0bn total debt
| Instrument | Coupon | Maturity | Amount | Source |
|---|---|---|---|---|
| Tranche C Term Loans · Senior Secured First Lien | SOFR + 3.00% (Term Benchmark) or ABR + 2.00% | — | USD 539m | source ↗ |
| Tranche A Term Loans · Senior Secured First Lien | Pricing Grid (SOFR-based, same as Revolving) | — | USD 500m | source ↗ |
| 4.125% Senior Unsecured Notes due 2024 · Senior Unsecured | 4.125% | — | — | source ↗ |
| 4.50% Senior Unsecured Notes due 2025 · Senior Unsecured | 4.50% | — | — | source ↗ |
| 5.375% Senior Unsecured Notes due 2029 · Senior Unsecured | 5.375% | — | — | source ↗ |
| 4.75% Senior Unsecured Notes due 2028 · Senior Unsecured | 4.75% | — | — | source ↗ |
Covenant analysis
| Covenant | Term | vs market | Source |
|---|---|---|---|
| Investments - General Basket · Negative Covenant / Investments | Up to $400,000,000 aggregate after Restatement Effective Date plus returns on such Investments | market $400m vs basket median $300m (n=49) | source ↗ |
| Investments - Ratio-Based Basket · Negative Covenant / Investments | Permitted if Consolidated Leverage Ratio ≤ 4.00x after pro forma effect | market 4x vs basket median 4x (n=54) | source ↗ |
| Debt Incurrence - Foreign Subsidiary Debt Sublimit · Negative Covenant / Debt | Aggregate principal amount of Foreign Subsidiary debt under Section 7.2(y) not to exceed $1,000,000,000 | source ↗ | |
| EBITDA Add-back Cap - Run-Rate Synergies · Financial Definition / EBITDA | Run-rate cost savings and synergies add-back capped at 20% of Consolidated EBITDA per trailing four quarters | source ↗ | |
| Optional Debt Repayment - Ratio-Based Permission · Negative Covenant / Debt Repayment | Permitted if Consolidated Leverage Ratio < 4.00x and Consolidated Secured Leverage Ratio < 2.00x, no Revolving Loans outstanding | source ↗ | |
| Tranche A Term Loan Amortization · Amortization | 2.50% on March 31 and June 30, 2025; 5.00% on September 30, 2025; balance at maturity | loose 2.5% vs amortization median 0.25% (n=19) | source ↗ |
| Tranche C Term Loan Amortization · Amortization | 0.25% per quarter of original principal amount, balance due at maturity | tight 0.25% vs amortization median 0.25% (n=19) | source ↗ |
| Restricted Payments - Annual Common Stock Basket · Negative Covenant / Restricted Payments | Up to $25,000,000 per fiscal year for Parent common stock dividends/repurchases | tight $25m vs basket median $300m (n=49) | source ↗ |
| Debt Incurrence - Foreign Subsidiary Indebtedness Basket · Negative Covenant / Debt | Up to $350,000,000 aggregate for Foreign Subsidiaries | market $350m vs basket median $300m (n=49) | source ↗ |
| Consolidated First Lien Leverage Ratio · Financial Maintenance Covenant | Maximum 3.00x (tested quarterly) | tight 3x vs leverage median 4x (n=99) | source ↗ |
| Tranche C Term Loan Soft Call Protection · Prepayment Premium | 1.00% prepayment fee on repricing or lower-rate refinancing within 6 months of Sixth Amendment Effective Date | market 1% vs prepayment premium median 1% (n=12) | source ↗ |
| Liens - General Basket · Negative Covenant / Liens | Up to $50,000,000 aggregate for non-enumerated Liens | tight $50m vs basket median $300m (n=49) | source ↗ |
| Asset Dispositions - Annual Basket · Negative Covenant / Asset Sales | Up to $1,000,000,000 fair market value per fiscal year | loose $1bn vs basket median $300m (n=49) | source ↗ |
| Restricted Payments - Tangible Assets Basket · Negative Covenant / Restricted Payments | Up to 1% of Consolidated Tangible Assets | tight 1% vs basket median 20% (n=122) | source ↗ |
| Debt Incurrence - Additional General Indebtedness Basket · Negative Covenant / Debt | Up to 3.25% of Consolidated Tangible Assets | tight 3.25% vs basket median 20% (n=122) | source ↗ |
| Restricted Payments - Ratio-Based Basket · Negative Covenant / Restricted Payments | Permitted if Consolidated Leverage Ratio ≤ 3.50x after pro forma effect | tight 3.5x vs basket median 4x (n=54) | source ↗ |
| Restricted Payments - Available Amount Basket · Negative Covenant / Restricted Payments | Up to Available Amount, subject to no Default and Consolidated Coverage Ratio > 2.00x | tight 2x vs basket median 4x (n=54) | source ↗ |
| Debt Incurrence - Secured Junior Lien Debt (Consolidated Secured Leverage) · Negative Covenant / Debt | Consolidated Secured Leverage Ratio ≤ 4.50x after giving pro forma effect | loose 4.5x vs leverage median 4x (n=99) | source ↗ |
| Mandatory Prepayment - Asset Sale / Recovery Event Proceeds · Mandatory Prepayment | 100% of Net Cash Proceeds from Asset Sales and Recovery Events (subject to reinvestment right) | market 100% vs mandatory prepayment median 100% (n=26) | source ↗ |
| Tranche B Term Loan Soft Call Protection · Prepayment Premium | 1.00% prepayment fee on repricing or lower-rate refinancing within 6 months of Tenth Amendment Effective Date | market 1% vs prepayment premium median 1% (n=12) | source ↗ |
Contact details
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