Debt Under Vehicle Programs and Borrowing Arrangements

9 Months Ended

Sep. 30, 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
	September 30,		December 31,
	2020		2019
Americas - Debt due to Avis Budget Rental Car Funding	$	6,144	$	7,975
Americas - Debt borrowings	634		827
International - Debt borrowings	1,449		2,100
International - Finance leases	157		215

Deferred financing fees (a)	(45)		(49)
Total	$	8,339	$	11,068

__________

(a)Deferred financing fees related to Debt due to Avis Budget Rental Car Funding as of September 30, 2020 and December 31, 2019 were $39 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%.

In August 2020, the Company’s Avis Budget Rental Car Funding subsidiary issued approximately $650 million in asset-backed notes with an expected final payment date of February 2026, incurring interest at a

weighted average rate of 2.28%.

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, 2020.


	Debt under Vehicle Programs (a)
Within 1 year (b)	$	2,588
Between 1 and 2 years (c)	2,038
Between 2 and 3 years	1,186
Between 3 and 4 years	1,430
Between 4 and 5 years	1,049
Thereafter	93
Total	$	8,384

__________

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

(b) Includes $1.5 billion of bank and bank-sponsored facilities.

Committed Credit Facilities and Available Funding Arrangements

As of September 30, 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	$	8,894	$	6,144	$	2,750
Americas - Debt borrowings	719		634		85
International - Debt borrowings	2,859		1,449		1,410
International - Finance leases	219		157		62

Total	$	12,691	$	8,384	$	4,307

__________

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

(b) The outstanding debt is collateralized by vehicles and related assets of $6.9 billion for Americas - Debt due to Avis Budget Rental Car Funding; $0.9 billion for Americas - Debt borrowings; $1.7 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 September 30, 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.