Avis Budget Group Issues $650M Asset-Backed Notes (5-Year ABS)

What Happened
Avis Budget Group, Inc. announced that its subsidiary Avis Budget Rental Car Funding (AESOP) LLC (ABRCF) closed a $650 million asset‑backed securities (ABS) offering on September 21, 2026. The five‑year Series 2026‑5 notes were issued under a Series 2026‑5 Supplement to the company’s Base Indenture, with The Bank of New York Mellon Trust Company, N.A. serving as trustee and Series Agent. The notes are secured by vehicles in Avis Budget’s domestic fleet and related assets. Avis also executed technical amendments to related fleet financing, lease and loan documents in connection with the issuance.

Key Details

• Total issued: $650.0 million aggregate principal amount of Series 2026‑5 notes (maturity: 5 years).
• Note class breakdown and coupons:
  • Class A: $474.5M at 5.69%
  • Class B: $61.75M at 5.95%
  • Class C: $47.125M at 6.44%
  • Class D: $66.625M at 8.14%
• Risk‑retention/Class R note: $35.75M Class R notes at 9.598% were issued subordinated to the other classes and are held by AESOP Leasing L.P. to comply with U.S. risk retention rules.
• Trustee/structure: Issued under the Series 2026‑5 Supplement to the Second Amended and Restated Base Indenture (originally dated June 3, 2004) with BNY Mellon as trustee/agent. Related amendments to lease and loan agreements are filed as exhibits.

Why It Matters
This transaction represents a secured financing move that raises $650 million backed by Avis Budget’s vehicle fleet, creating a new set of fixed‑rate obligations over five years. For investors, it affects the company’s financing and capital structure (adds asset‑backed debt secured by fleet assets) and reflects one method the company uses to fund and manage its rental fleet. The filing also notes the legal/structural details (trustee, collateral, risk retention) and attached amendments, which provide the full terms for those who want to review the securities documentation.