What was the increase in capacity, in Euros, of Budget's European rental fleet securitization program after the February 2024 amendment?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Debt borrowings. In EMEA we operate a European rental fleet securitization program which is used to finance fleet purchases for certain of our European operations. In February 2024, we amended our European rental fleet securitization program to increase its capacity from €1.7 billion to €1.9 billion, to add £200 million to our capacity within the program, and to extend the maturity of the program from 2024 to 2026. The International borrowings primarily represent floating rate notes and had a weighted average interest rate of 6.07% and 5.51% as of December 31, 2024 and 2023, respectively.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the company operates a European rental fleet securitization program to finance fleet purchases for its European operations. In February 2024, Budget amended this program, increasing its capacity from €1.7 billion to €1.9 billion. This represents an increase of €200 million.
This increase in capacity means that Budget has access to additional funds to purchase vehicles for its rental fleet in Europe. For a prospective franchisee, this indicates that Budget is actively investing in and expanding its European operations. It also suggests that Budget has the financial resources to support its franchisees in the region.
The amendment also added £200 million to the program's capacity and extended the program's maturity from 2024 to 2026. The extension of the maturity date provides Budget with more financial flexibility and stability in its European operations. The debt borrowings primarily represent floating rate notes and had a weighted average interest rate of 6.07% and 5.51% as of December 31, 2024 and 2023, respectively.