What is the relationship between PV Holding Corp. and the Budget loan agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Second Amendment, dated as of May 9, 2007, among AESOP Leasing L.P., as Borrower, PV Holding Corp., as a Permitted Nominee, Quartx Fleet Management, Inc., as a Permitted Nominee, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007). |
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| Form 10-Q for the guarterly genod ended June 30, 2007, Gated August 5, 2007. Third Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Borrower, PV Holding Corp., as a Permitted Nominee, Quarts Fleet Management, Inc., as a Permitted Nominee, and Avis Budget Third Amendment, dated as of June 3, 2004 (Incomporated by reference to Exhibit 10,36(c) to the Company's Annual Report on Rental Car Funding (AESOP) LLC, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incomporated by reference to Exhibit 10,36(c) to the Company's Annual Report on Port 10-K for the year ended December 31, 2013, dated February 20, 2014). |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, PV Holding Corp. is identified as a "Permitted Nominee" in several amendments to the loan agreement involving AESOP Leasing L.P. as the borrower and Avis Budget Rental Car Funding (AESOP) LLC as the lender. These amendments include the Second Amendment dated May 9, 2007, and the Third Amendment dated August 16, 2013, to the Second Amended and Restated Loan Agreement dated June 3, 2004.
Being a "Permitted Nominee" suggests that PV Holding Corp. has a specific, authorized role within the loan agreement's structure, though the exact nature of this role is not detailed in the provided excerpt. It could involve acting as an intermediary, a guarantor, or a representative for certain aspects of the loan. The presence of multiple nominees, such as Quartx Fleet Management, Inc., indicates a potentially complex financial arrangement.
For a prospective Budget franchisee, this information is relevant because it provides insight into the financial structuring and relationships of the parent company. Understanding these relationships can offer a clearer picture of the financial stability and potential obligations of Budget's parent organization. While the excerpt does not specify the precise responsibilities of a "Permitted Nominee," it highlights the involvement of PV Holding Corp. in Budget's financial agreements.
To gain a comprehensive understanding, a potential franchisee should seek clarification from Budget regarding the specific role and responsibilities of PV Holding Corp. as a "Permitted Nominee" within these loan agreements. Understanding the implications of these financial arrangements can aid in assessing the overall financial health and stability of the Budget franchise system.