AVIS BUDGET GROUP, INC. 8-K

What Happened

• On December 30, 2025, Avis Budget Group’s subsidiary Interpace Funding LLC issued $965 million of alternative funding asset‑backed securities under a Series 2025‑1 Supplement with The Bank of New York Mellon Trust Company, N.A. as trustee. The issuance targets a two‑year term with a stated maturity date of June 20, 2028.
• The issuance is comprised of approximately $844 million of floating‑rate Class A Notes, $44 million of 5.65% Class B Notes, and $77 million of 7.35% Class C Notes. The notes are secured by certain vehicles in Avis’s U.S. fleet and related assets.
• In connection with the new issuance, on December 31, 2025 Avis repaid $965 million of outstanding notes issued by its Avis Budget Rental Car Funding (AESOP) LLC subsidiary — $906 million of Series 2010‑6 Notes and $59 million of Series 2015‑3 Notes.

Key Details

• Issued amount: $965 million (Series 2025‑1)
• Note breakdown: ~$844M floating‑rate Class A; $44M Class B at 5.65%; $77M Class C at 7.35%
• Maturity: targeted two‑year term; stated maturity June 20, 2028
• Security/trustee: secured by domestic fleet vehicles and related assets; trustee is BNY Mellon
• Related action: $965M AESOP notes repaid on December 31, 2025 (Series 2010‑6 and 2015‑3)

Why It Matters

• This transaction replaces prior AESOP financing with a new asset‑backed issuance, creating a direct financial obligation and resetting the company’s secured funding structure for a roughly two‑year horizon.
• The majority of the new issuance is floating‑rate Class A debt, so interest expense may vary with market rates; fixed‑rate Class B and C tranches lock in higher coupon levels for those portions.
• The notes are secured by fleet assets, which is common for rental‑car financing; investors should note the June 2028 maturity and any future refinancing needs or impacts on liquidity and leverage.