Business Context and Reporting Period
Company: Avis Budget Group, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 16, 2025
Event: Entry into a Material Definitive Agreement involving the issuance of asset-backed securities by the subsidiary Avis Budget Rental Car Funding (AESOP) LLC ("ABRCF").
Key Financial Metrics
This filing details a specific financing transaction rather than periodic operating results. Key metrics related to the transaction include:
- Total Securities Issued: $793.2 million aggregate principal amount.
- Structure: Asset-backed securities secured by vehicles in the domestic fleet and related assets.
- Maturities: Three years and five years.
- Risk Retention: $43.7 million in Class R notes ($15.6 million Series 2025-3; $28.1 million Series 2025-4) held by AESOP Leasing L.P. to comply with U.S. risk retention rules.
Note: The filing text does not provide clear values for revenue, profit, cash flow, margins, or total debt levels outside of this specific transaction.
Material Changes and Transaction Details
On September 16, 2025, ABRCF issued two series of notes under the Second Amended and Restated Base Indenture:
| Series | Class | Interest Rate | Principal Amount ($ Million) |
|---|---|---|---|
| 2025-3 | Class A | 4.17% | 199.0 |
| Class B | 4.46% | 29.75 | |
| Class C | 4.95% | 21.25 | |
| Class D | 6.42% | 33.29 | |
| 2025-4 | Class A | 4.40% | 358.2 |
| Class B | 4.77% | 53.55 | |
| Class C | 5.26% | 38.25 | |
| Class D | 6.72% | 59.92 |
The Class D notes were retained by ABRCF and may be sold in the future. The Class R notes are subordinated to Classes A, B, C, and D.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the successful closing of the securitization transaction. It notes that certain purchasers, the trustee, and their affiliates have performed and may continue to perform commercial banking and financial advisory services for the company, for which customary fees are received.
Risks and Contingencies: The notes are secured by the domestic fleet. The filing incorporates by reference the full text of the Series 2025-3 and Series 2025-4 Supplements for complete terms and conditions. No specific forward-looking guidance on earnings or operational outlook is provided in this document.
Investor Verification Checklist
- Verify the impact of the $793.2 million issuance on the company's total leverage ratios and liquidity position.
- Review the full text of the Series 2025-3 and Series 2025-4 Supplements (Exhibits 10.1 and 10.2) for covenants and default provisions.
- Confirm the status of the retained Class D notes and the timeline for their potential future sale.
- Assess the cost of capital relative to current market rates for similar asset-backed securities.