Debt Under Vehicle Programs and Borrowing Arrangements

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt Under Vehicle Programs and Borrowing Arrangements

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,
	2023		2022
Americas - Debt due to Avis Budget Rental Car Funding	$	15,182	$	11,322
Americas - Debt borrowings	889		598
International - Debt borrowings	2,385		1,700
International - Finance leases	184		176
Other	86		65
Deferred financing fees (a)	(73)		(52)
Total	$	18,653	$	13,809

__________

(a)Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of September 30, 2023 and December 31, 2022 were $67 million and $47 million, respectively.

In January 2023, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued $500 million and $350 million of asset-backed notes to investors with an expected final payment date of April 2028 and October 2026, respectively, and a weighted average interest rate of 5.36% and 5.31%, respectively.

In April 2023, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued $450 million and $550 million of asset-backed notes to investors with an expected final payment date of February 2027 and June 2028, respectively, and a weighted average interest rate of 5.67% and 5.76%, respectively.

In June 2023, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued $476 million and $526 million of asset-backed notes to investors with an expected final payment date of April 2027 and December 2028, respectively, and a weighted average interest rate of 5.91% and 5.98%, respectively.

In September 2023, our Avis Budget Rental Car Funding (AESOP) LLC subsidiary issued $300 million and

$700 million of asset-backed notes to investors with an expected final payment date of August 2027 and February 2029, respectively, and a weighted average interest rate of 6.09% and 6.21%, respectively.

Debt Maturities

The following table provides the contractual maturities of our debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at September 30, 2023:

	Debt under Vehicle Programs (a)
Within 1 year (b)	$	4,343
Between 1 and 2 years (c)	5,646
Between 2 and 3 years	2,924
Between 3 and 4 years	2,794
Between 4 and 5 years (d)	1,939
Thereafter	1,080
Total	$	18,726

__________

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

(b)    Includes $2.7 billion of bank and bank-sponsored facilities.

(c)    Includes $3.7 billion of bank and bank-sponsored facilities.

(d)    Includes $0.1 billion of bank and bank-sponsored facilities.

Committed Credit Facilities and Available Funding Arrangements

As of September 30, 2023, available funding under our debt arrangements related to our 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	$	15,896	$	15,182	$	714
Americas - Debt borrowings	940		889		51
International - Debt borrowings	2,625		2,385		240
International - Finance leases	249		184		65
Other	86		86		—
Total	$	19,796	$	18,726	$	1,070

__________

(a)    Capacity is subject to maintaining sufficient assets to collateralize debt. The total capacity for Americas - Debt due to Avis Budget Rental Car Funding includes increases from an amendment and renewal of our asset-backed variable-funding financing facilities during March 2023 and was subsequently amended during July 2023.

(b)    The outstanding debt is collateralized by vehicles and related assets of $17.5 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.4 billion for Americas - Debt borrowings; $3.1 billion for International - Debt borrowings; and $0.2 billion for International - Finance leases.

Debt Covenants

The agreements under our vehicle-backed funding programs contain restrictive covenants, including restrictions on dividends paid to us by certain of our 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, 2023, we are not aware of any instances of non-compliance with any of the financial or restrictive covenants contained in the debt agreements under our vehicle-backed funding programs.