Business Context and Reporting Period
Company: Avis Budget Group, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 9, 2026
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: $650 million aggregate principal amount.
- Structure: Asset-backed securities secured by vehicles in the domestic fleet and related assets.
- Maturities: Three-year and five-year terms.
- Interest Rates: Ranging from 4.82% to 9.134% depending on the class and series.
Note: The filing does not provide current period revenue, profit, cash flow, margins, or total debt levels.
Material Changes and Transaction Details
The company executed two series of notes on the Closing Date (June 9, 2026):
Series 2026-3
- Class A: $182.50 million at 4.82%
- Class B: $23.75 million at 5.21%
- Class C: $16.25 million at 5.50%
- Class D: $27.50 million at 6.96%
- Class R (Risk Retention): $13.75 million at 8.429% (held by AESOP Leasing L.P.)
Series 2026-4
- Class A: $292 million at 5.09%
- Class B: $38 million at 5.48%
- Class C: $26 million at 5.87%
- Class D: $44 million at 7.67%
- Class R (Risk Retention): $22 million at 9.134% (held by AESOP Leasing L.P.)
The Class R notes are subordinated to Classes A, B, C, and D to comply with U.S. risk retention rules.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the successful closing of the securitization program. 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 paid.
Risks and Contingencies: The filing does not explicitly list new risks beyond the standard obligations of the indenture. The notes are secured by specific assets (domestic fleet vehicles), implying that the value of these assets is critical to the security of the debt.
Guidance: No forward-looking financial guidance or outlook is provided in this specific 8-K filing.
Investor Verification Checklist
- Verify the impact of the $650 million issuance on the company's total leverage ratios and liquidity position.
- Review the full text of the Series 2026-3 and Series 2026-4 Supplements (Exhibits 10.1 and 10.2) for specific covenants and default provisions.
- Confirm the composition and valuation of the domestic fleet assets securing the notes.
- Assess the cost of capital relative to current market rates for similar asset-backed securities.
- Monitor future filings for any changes in the risk retention structure or additional securitization activities.