Debt Under Vehicle Programs and Borrowing Arrangements

3 Months Ended

Mar. 31, 2020

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,
	2020			2019
Americas - Debt due to Avis Budget Rental Car Funding	$	9,392		$	7,975
Americas - Debt borrowings	702			827
International - Debt borrowings	1,779			2,100
International - Finance leases	172			215
Other	3			—
Deferred financing fees ^(a)	(50		)	(49		)
Total	$	11,998		$	11,068

__________


^(a)	Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of March 31, 2020 and December 31, 2019 was $42 million and $40 million, respectively.

In January 2020, the Company’s Avis Budget Rental Car Funding subsidiary issued approximately $700 million in asset-backed notes with an expected final payment date of August 2025 incurring interest at a weighted average rate of 2.42%.

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, 2020.



	Debt under Vehicle Programs ^(a)
Within 1 year	$	1,694
Between 1 and 2 years ^(b)	5,607
Between 2 and 3 years	1,406
Between 3 and 4 years	1,136
Between 4 and 5 years	1,583
Thereafter	622
Total	$	12,048

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


^(b)	Includes $4.8 billion of bank and bank-sponsored facilities.

Committed Credit Facilities and Available Funding Arrangements

As of March 31, 2020, 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	$	9,392	$	9,392	$	—
Americas - Debt borrowings	909		702		207
International - Debt borrowings	2,880		1,779		1,101
International - Finance leases	204		172		32
Other	3		3		—
Total	$	13,388	$	12,048	$	1,340

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


^(b)	The outstanding debt is collateralized by vehicles and related assets of $10.5 billion for Americas - Debt due to Avis Budget Rental Car Funding; $0.8 billion for Americas - Debt borrowings; $2.1 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 March 31, 2020, 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.