AVIS BUDGET GROUP, INC. 8-K

What Happened

• Avis Budget Group (through subsidiary Avis Budget Rental Car Funding (AESOP) LLC) announced on June 9, 2026 that it issued $650 million of asset‑backed securities, split between Series 2026-3 (three‑year) and Series 2026-4 (five‑year) financings. The notes were issued under supplements to the company’s Base Indenture with The Bank of New York Mellon Trust Company, N.A. serving as trustee/agent. The securities are secured by vehicles in Avis Budget’s domestic fleet and related assets.

Key Details

• Total issuance: $650.0 million across two series (Series 2026-3 and Series 2026-4).
• Series 2026-3 (three years): $182.50M Class A (4.82%), $23.75M Class B (5.21%), $16.25M Class C (5.50%), $27.50M Class D (6.96%); plus $13.75M Class R (8.429%) held by AESOP Leasing L.P.
• Series 2026-4 (five years): $292.0M Class A (5.09%), $38.0M Class B (5.48%), $26.0M Class C (5.87%), $44.0M Class D (7.67%); plus $22.0M Class R (9.134%) held by AESOP Leasing L.P.
• The Class R notes are subordinated to Classes A–D and were issued to satisfy U.S. risk‑retention rules. Trustee/agent: The Bank of New York Mellon Trust Company, N.A.

Why It Matters

• This transaction creates new secured debt (a direct financial obligation) backed by Avis Budget’s vehicle fleet. For investors, it affects the company’s financing profile and liquidity by raising $650M through securitization rather than unsecured borrowing or equity. The structure and interest rates on the different note classes indicate how cash flows from the leased vehicles will be prioritized among investors and that the company has complied with regulatory risk‑retention requirements by holding the subordinated Class R notes.