Debt Under Vehicle Programs and Borrowing Arrangements

6 Months Ended

Jun. 30, 2019

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
	June 30,			December 31,
	2019			2018
Americas - Debt due to Avis Budget Rental Car Funding ^(a)	$	8,951		$	7,393
Americas - Debt borrowings ^(a)	986			635
International - Debt borrowings ^(a)	2,342			2,060
International - Finance leases ^(a)	226			191
Other	1			2
Deferred financing fees ^(b)	(50		)	(49		)
Total	$	12,456		$	10,232

__________


^(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 June 30, 2019 and December 31, 2018 was $38 million and $35 million, respectively.

In February 2019, the Company’s Avis Budget Rental Car Funding subsidiary issued approximately $600 million in asset-backed notes with an expected final payment date of March 2022 incurring interest at a weighted average rate of 3.56%.

In April 2019, the Company’s Avis Budget Rental Car Funding subsidiary issued approximately $650 million in asset-backed notes with an expected final payment date of September 2024 incurring interest at a weighted average rate of 3.44%.

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 June 30, 2019.



	Debt under Vehicle Programs ^(a)
Within 1 year	$	1,636
Between 1 and 2 years ^(b)	4,747
Between 2 and 3 years ^(c)	3,102
Between 3 and 4 years	1,207
Between 4 and 5 years	1,275
Thereafter	539
Total	$	12,506

__________


^(a)	Vehicle-backed debt primarily represents asset-backed securities.


^(b)	Includes $3.5 billion of bank and bank-sponsored facilities.


^(c)	Includes $1.7 billion of bank and bank-sponsored facilities.

Committed Credit Facilities and Available Funding Arrangements

As of June 30, 2019, 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 ^(b)		Available Capacity
Americas - Debt due to Avis Budget Rental Car Funding	$	9,526	$	8,951	$	575
Americas - Debt borrowings	1,008		986		22
International - Debt borrowings	3,017		2,342		675
International - Finance leases	248		226		22
Other	1		1		—
Total	$	13,800	$	12,506	$	1,294

__________


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


^(b)	The outstanding debt is collateralized by vehicles and related assets of $10.4 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.1 billion for Americas - Debt borrowings; $2.7 billion for International - Debt borrowings; and $0.2 billion for International - Finance leases.

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 June 30, 2019, 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.