Avis Budget Prices $300M 8% Notes, Ends $132M Verra Tolling Contract
CAR•Avis Budget Group priced $300 million of additional 8.000% Senior Notes due 2031 at 100.5% of face value, with proceeds earmarked to redeem part of its 5.750% notes maturing in 2027 and cover related expenses. The company also ended its $132 million tolling contract with Verra Mobility, shifting service in-house.
1. Senior Notes Offering
On May 27, Avis Budget Group priced a private offering of $300 million aggregate principal amount of additional 8.000% Senior Notes due February 15, 2031, at 100.5% of face value. The notes, guaranteed by the company and certain U.S. subsidiaries, will use net proceeds and cash on hand to redeem a portion of the 5.750% Senior Notes due 2027 and to pay related fees and expenses.
2. Tolling Contract Termination
Avis Budget Group terminated its long-standing tolling-services agreement with Verra Mobility, which accounted for roughly $132 million in annual service fees for Verra. The company plans to transition toll processing either in-house or through alternative providers to lower third-party costs and streamline operations.
