Avis Budget Group Agrees to $650M Settlement and Debt Repayment
Avis Budget Group, Inc. (NASDAQ:CAR) agreed to a $650 million cash settlement to resolve a Section 16(b) lawsuit. The car rental company will allocate part of these funds to pay off $350 million of its 5.75% senior notes maturing in 2027. Shares of the company moved down 3.65% to $106 following the news.
The agreement clears pending legal claims under Section 16(b) while allowing the business to address its debt obligations. Avis Budget Group will formally record the $350 million note redemption during the fourth quarter of 2026.
Investors will hear more details during the company's upcoming quarterly earnings call scheduled for November 4, 2026, at 8:30 AM ET. Audio webcasts and phone replays will be accessible on the corporate investor relations page.
Key points
- Avis Budget Group, Inc. agreed to a $650 million cash settlement resolving a Section 16(b) suit.
- The company plans to use settlement funds to pay down $350 million of 5.75% senior notes due in 2027.
- The senior note repayment will be formally recorded in fourth-quarter 2026 results.
- An investor earnings call is scheduled for November 4, 2026, at 8:30 AM ET.
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How we writeDisclaimerQuestions and answers
What is the Avis Budget Group Section 16(b) settlement amount?
Avis Budget Group agreed to a $650 million cash settlement to resolve the Section 16(b) lawsuit.
How will Avis Budget Group use its settlement proceeds?
The company plans to use a portion of the cash settlement to repay $350 million of its 5.75% senior notes due in 2027, recording the transaction in Q4 2026.
When is the next Avis Budget Group investor earnings call?
Avis Budget Group will host its investor earnings call on November 4, 2026, at 8:30 AM ET.