Share Repurchase Program
On August 3, 2021, the board of directors of Avis Budget Group, Inc. (the “Company”) approved a $1 billion increase to the Company’s existing share repurchase authorization. After giving effect to this increase, as of July 31, 2021, the Company had approximately $1.1 billion of available share repurchase authorization.
Under the Company’s stock repurchase program, the Company repurchases shares from time to time in open market transactions, and may also repurchase shares in accelerated share repurchases, tender offers, privately negotiated transactions or by other means. Repurchases may also be made under a plan pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The timing and amount of repurchase transactions will be determined by the Company’s management based on its evaluation of market conditions, the Company’s share price, legal requirements and other factors. The stock repurchase program may be suspended, modified or discontinued at any time without prior notice.
Redemption of 5.25% Senior Notes due 2025
On August 3, 2021, Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. (collectively, the “Issuers”), each a subsidiary of the Company, called for redemption all of the Issuers’ outstanding 5.25% Senior Notes due 2025 (the “Notes”) at a redemption price equal to 101.750% of the principal amount thereof plus accrued and unpaid interest, if any, to, but excluding, the redemption date (the “Redemption Price”). The current principal amount of the Notes outstanding is $235 million. The Issuers expect to fund the Redemption Price with cash on hand. This Current Report does not constitute a notice of redemption with respect to the Notes.
