Debt Under Vehicle Programs and Borrowing Arrangements

Debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”), consisted of:



	As of			As of
	March 31,			December 31,
	2016			2015
Americas - Debt due to Avis Budget Rental Car Funding ^(a)	$	7,665		$	6,837
Americas - Debt borrowings ^(a)	724			643
International - Debt borrowings ^(a)	1,325			1,187
International - Capital leases	197			238
Other	4			8
Deferred financing fees ^(b)	(54		)	(53		)
Total	$	9,861		$	8,860

__________


^(a)	The increase reflects additional borrowings principally to fund increases in the Company’s car rental fleet.


^(b)	Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of March 31, 2016 and December 31, 2015 were $42 million and $41 million, respectively.

In March 2016, the Company’s Avis Budget Rental Car Funding subsidiary issued $450 million in asset-backed notes at a weighted average interest rate of 3.25%. The expected final payment date of these notes is June 2021.

DEBT MATURITIES

The following table provides the contractual maturities of the Company’s debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at March 31, 2016.



	Debt under Vehicle Programs
Within 1 year ^(a)	$	1,565
Between 1 and 2 years	3,161
Between 2 and 3 years	1,987
Between 3 and 4 years	1,498
Between 4 and 5 years	1,322
Thereafter	382
Total	$	9,915

__________


^(a)	Vehicle backed debt maturing within one year primarily represents term asset-backed securities.

COMMITTED CREDIT FACILITIES AND AVAILABLE FUNDING ARRANGEMENTS

As of March 31, 2016, available funding under the Company’s vehicle programs, including related party debt due to Avis Budget Rental Car Funding, consisted of:



	Total Capacity ^(a)		Outstanding Borrowings		Available Capacity
Americas - Debt due to Avis Budget Rental Car Funding ^(b)	$	9,265	$	7,665	$	1,600
Americas - Debt borrowings ^(c)	1,025		724		301
International - Debt borrowings ^(d)	2,453		1,325		1,128
International - Capital leases ^(e)	224		197		27
Other	4		4		—
Total	$	12,971	$	9,915	$	3,056

__________


^(a)	Capacity is subject to maintaining sufficient assets to collateralize debt.


^(b)	The outstanding debt is collateralized by approximately $9.3 billion of underlying vehicles and related assets.


^(c)	The outstanding debt is collateralized by approximately $0.9 billion of underlying vehicles and related assets.


^(d)	The outstanding debt is collateralized by approximately $1.8 billion of underlying vehicles and related assets.


^(e)	The outstanding debt is collateralized by approximately $0.2 billion of underlying vehicles and related assets.

DEBT COVENANTS

The agreements under the Company’s vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries and restrictions on indebtedness, mergers, liens, liquidations and sale and leaseback transactions and in some cases also require compliance with certain financial requirements. As of March 31, 2016, the Company is not aware of any instances of non-compliance with any of the financial covenants contained in the debt agreements under its vehicle-backed funding programs.