When could Budget first redeem the 4.750% euro-denominated Senior Notes due 2026?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
of our outstanding balance using the proceeds from the issuance of our 8.000% Senior Notes due February 2031. In October 2024, we fully repaid the outstanding borrowings under our floating rate term loan due 2029 using the proceeds from the issuance of our 8.250% Senior Notes due January 2030.
Sonior Notes
- 4.750% euro-denominated Senior Notes due 2026. In October 2018, we issued €350 million of 4.750% euro-denominated Senior Notes due 2026, at par, with interest payable semi-annually. We had the right to redeem these notes in whole or in part on or after September
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the company issued €350 million of 4.750% euro-denominated Senior Notes due 2026 in October 2018. Budget had the right to redeem these notes, in whole or in part, on or after September 30, 2021, at specified redemption prices plus accrued interest.
However, the document also states that in April 2024, Budget redeemed these notes using the proceeds from their 7.000% euro-denominated Senior Notes due February 2029. This indicates that the 4.750% euro-denominated Senior Notes due 2026 were no longer outstanding as of April 2024, as they were fully redeemed.
For a prospective franchisee, this information provides insight into Budget's debt management and financing activities. While the notes were initially redeemable starting September 30, 2021, they were ultimately redeemed in full in April 2024, which could reflect a strategic decision to refinance debt or manage interest rate exposure.