What is the value of the vehicles and related assets collateralizing Budget's International - Debt borrowings?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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Capacity is subject to maintaining sufficient assets to collateralize debt. The total capacity for Americas — Debt due to Avis Budget Rental Car Funding includes increases from amendments of our asset-backed variable funding financing facilities, which were most recently amended and extended in December 2024.
The outstanding debt is collateralized by vehicles and related assets of $14 billion for Americas - Debt due to Avis Budget Rental Car Funding; $1.5 billion for Americas - Debt borrowings; $2.7 billion for International - Debt borrowings, and $0.2 billion for International - Debt borrowings, and $0.2 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, and $0.2 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for International - Debt borrowings, $2.7 billion for I
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the company's International - Debt borrowings are collateralized by vehicles and related assets valued at $2.7 billion. This debt is part of Budget's overall financing strategy, which includes various debt and lease arrangements to fund its vehicle fleet. The ability to maintain sufficient assets to cover this debt is crucial for Budget.
Budget utilizes a European rental fleet securitization program in EMEA 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 and adding £200 million to its capacity, while also extending the program's maturity to 2026. The international borrowings primarily consist of floating rate notes, with weighted average interest rates of 6.07% and 5.51% as of December 31, 2024, and 2023, respectively.
Prospective Budget franchisees should understand that these debt obligations and the assets backing them are a critical part of Budget's financial structure. The performance of the vehicle fleet and the ability to manage debt effectively can impact the overall financial health of Budget, which in turn could affect franchisees. It is important for potential franchisees to review Budget's financial statements and understand how these debt arrangements might influence the company's operations and stability.