Avis Budget Plans $300M 8% Notes and Faces $135–145M Revenue Cut
CAR•Avis Budget will privately issue $300 million of 8.000% senior unsecured notes due 2031 to redeem part of its 5.750% notes maturing in 2027. The termination of its Verra Mobility contract will cut $135–145 million in annual revenue and $120–125 million in segment profit starting September 2026.
1. Senior Notes Offering
Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. intend to offer $300 million of 8.000% senior unsecured notes due 2031 under their existing indenture. Proceeds will be used alongside cash on hand to redeem a portion of the 5.750% senior notes maturing in 2027 and cover related fees.
2. Impact of Verra Contract Termination
Avis Budget’s Commercial Services segment will lose Verra Mobility’s contract revenue of $135–145 million annually and segment profit of $120–125 million when the agreement ends in September 2026. The company may pursue cost reductions or new partnerships to mitigate this revenue and profit gap.
