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
	September 30,			December 31,
	2016			2015
Americas - Debt due to Avis Budget Rental Car Funding ^(a)	$	7,171		$	6,837
Americas - Debt borrowings ^(a)	747			643
International - Debt borrowings ^(a)	2,065			1,187
International - Capital leases	168			238
Other	1			8
Deferred financing fees ^(b)	(52		)	(53		)
Total	$	10,100		$	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 September 30, 2016 and December 31, 2015 were $37 million and $41 million, respectively.

During March 2016 and June 2016, the Company’s Avis Budget Rental Car Funding subsidiary issued approximately $450 million in asset-backed notes with an expected final payment date of June 2021 and approximately $500 million in asset-backed notes with an expected final payment date of November 2021, respectively. The weighted average interest rate for these borrowings was 3%.

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 September 30, 2016.



	Debt under Vehicle Programs
Within 1 year ^(a)	$	1,365
Between 1 and 2 years	2,526
Between 2 and 3 years	3,166
Between 3 and 4 years	1,666
Between 4 and 5 years	1,058
Thereafter	371
Total	$	10,152

__________


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

Committed Credit Facilities and Available Funding Arrangements

As of September 30, 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)	$	9,556	$	7,171	$	2,385
Americas - Debt borrowings ^(c)	962		747		215
International - Debt borrowings ^(d)	2,671		2,065		606
International - Capital leases ^(e)	208		168		40
Other	1		1		—
Total	$	13,398	$	10,152	$	3,246

__________


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


^(b)	The outstanding debt is collateralized by approximately $8.7 billion of underlying vehicles and related assets.


^(c)	The outstanding debt is collateralized by approximately $1.1 billion of underlying vehicles and related assets.


^(d)	The outstanding debt is collateralized by approximately $2.4 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 September 30, 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.