Business Context and Reporting Period
Company: Avis Budget Group, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 30, 2025
Event: Entry into a Material Definitive Agreement and creation of a direct financial obligation involving the issuance of asset-backed securities by subsidiary Interpace Funding LLC.
Key Financial Metrics
This filing reports a specific financing transaction rather than periodic operating results. Key figures include:
- Total Securities Issued: $965 million in alternative funding asset-backed securities.
- Term: Targeted two-year term with a maturity date of June 20, 2028.
- Debt Structure:
- Class A Notes: Approximately $844 million (Floating Rate).
- Class B Notes: $44 million (5.65% fixed rate).
- Class C Notes: $77 million (7.35% fixed rate).
- Collateral: Secured by certain vehicles in the domestic fleet and other related assets.
- Debt Repayment: $965 million of prior notes repaid on December 31, 2025, consisting of $906 million of Series 2010-6 Notes and $59 million of Series 2015-3 Notes.
Note: The filing text does not provide values for revenue, profit, cash flow, margins, or overall liquidity positions outside of this specific transaction.
Material Changes Versus Prior Period
The primary material change is the refinancing of existing debt obligations. The company replaced $965 million of notes issued under previous asset-backed variable funding facilities (Series 2010-6 and Series 2015-3) with new Series 2025-1 notes. This action alters the maturity profile and interest rate structure of the specific debt tranche involved.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the successful closing of the issuance and the immediate repayment of legacy notes. It notes that certain purchasers and the trustee have provided and will continue to provide commercial banking and financial advisory services for which customary fees are paid.
Risks and Contingencies: The filing does not explicitly detail new risks or contingencies beyond the standard obligations of the indenture and the reliance on the performance of the underlying fleet assets securing the notes.
Investor Verification Checklist
- Verify the exact floating rate benchmark and spread for the $844 million Class A Notes.
- Confirm the impact of the new interest rates (5.65% and 7.35%) on the company's overall weighted average cost of debt compared to the repaid Series 2010-6 and 2015-3 notes.
- Review the specific composition of the "domestic fleet and other related assets" pledged as collateral for the new securities.
- Assess the remaining maturity profile of the company's total debt load following the repayment of the $965 million in legacy notes.