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,
	2017			2016
Americas - Debt due to Avis Budget Rental Car Funding ^(a)	$	6,816		$	6,733
Americas - Debt borrowings ^(a)	947			577
International - Debt borrowings ^(a)	2,684			1,449
International - Capital leases	159			162
Other	1			7
Deferred financing fees ^(b)	(41		)	(50		)
Total	$	10,566		$	8,878

__________


^(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, 2017 and December 31, 2016 were $31 million and $38 million, respectively.

In March 2017, the Company’s Avis Budget Rental Car Funding subsidiary issued approximately $600 million in asset-backed notes with an expected final payment date of September 2022. The weighted average interest rate was 3%. The Company used the proceeds from these borrowings to fund the repayment of maturing vehicle-backed debt and the acquisition of rental cars in the United States.

In May 2017, the Company increased its capacity under the European rental fleet securitization program by €250 million. The Company used the proceeds to finance fleet purchases for certain of the Company’s European operations.

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, 2017.



	Debt under Vehicle Programs
Within 1 year ^(a)	$	1,868
Between 1 and 2 years	4,751
Between 2 and 3 years	1,908
Between 3 and 4 years	1,143
Between 4 and 5 years	800
Thereafter	137
Total	$	10,607

__________


^(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, 2017, 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)	$	9,106	$	6,816	$	2,290
Americas - Debt borrowings ^(c)	974		947		27
International - Debt borrowings ^(d)	2,897		2,684		213
International - Capital leases ^(e)	189		159		30
Other	1		1		—
Total	$	13,167	$	10,607	$	2,560

__________


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


^(b)	The outstanding debt is collateralized by approximately $8.4 billion of underlying vehicles and related assets.


^(c)	The outstanding debt is collateralized by approximately $1.3 billion of underlying vehicles and related assets.


^(d)	The outstanding debt is collateralized by approximately $3.1 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, 2017, 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.