When could Budget first redeem the 5.375% Senior Notes due March 2029?

According to Budget's 2025 Franchise Disclosure Document, the company issued $600 million of 5.375% Senior Notes due March 2029 in March 2021. These notes were issued at par, with interest paid semi-annually. Budget has the right to redeem these notes, in whole or in part, at any time on or after March 1, 2024, at specified redemption prices plus accrued interest.

For a prospective franchisee, this information is relevant in understanding Budget's debt obligations and its ability to manage its finances. The ability to redeem notes early can provide Budget with financial flexibility, potentially reducing interest expenses and improving its overall financial health.

However, it's important to note that the redemption is at Budget's discretion and is subject to specified redemption prices and accrued interest. This means that Budget will likely only redeem the notes if it is financially advantageous to do so. The funds used to redeem the 5.375% Senior Notes due 2029 came from net proceeds, along with cash on hand, and were used to redeem all of the outstanding 10.500% Senior Secured Notes due 2025 for $599 million plus accrued interest.