Avis Budget Group Announces At-the-Market Equity Offering of Up to 5,000,000 Shares

Key Details of the Offering

• Date of Announcement: March 27, 2026
• Issuer: Avis Budget Group, Inc. (“the Company”)
• Type of Offering: At-the-market (“ATM”) equity offering
• Maximum Shares to be Offered: Up to 5,000,000 shares of common stock, par value \$0.01 per share
• Equity Distribution Agreement with:
  • BofA Securities, Inc.
  • BNP Paribas Securities Corp.
  • Credit Agricole Securities (USA) Inc.
  • J.P. Morgan Securities LLC
  • Morgan Stanley & Co. LLC
  • RBC Capital Markets, LLC
  • Scotia Capital (USA) Inc.
  • SG Americas Securities, LLC
  • Truist Securities, Inc.
  • Wells Fargo Securities, LLC
• Trading Symbol: CAR
• Exchange: Nasdaq Global Select Market
• Form Filed: 8-K, accompanied by a shelf registration statement on Form S-3ASR (File No. 333-294689) and a prospectus supplement dated March 27, 2026

Details and Mechanics of the ATM Program

• The shares may be sold from time to time through or to the designated sales agents, either as the Company’s agents or as principals.
• Sales will be conducted as “at-the-market” offerings as defined under Rule 415 of the Securities Act of 1933, as amended. This means shares will be sold in negotiated transactions or on the open market at prevailing prices.
• The compensation for the managers acting as agents will not exceed 2.00% of the gross sales price of the shares sold.
• The Company retains discretion over the amount, timing, and pricing of share sales and will instruct only one agent to sell on any given trading day.
• The Company may impose additional restrictions or parameters on share sales, such as minimum market price or maximum shares per day.
• Sales can be suspended at the Company’s discretion, especially around earnings announcements or periods where the Company may possess material non-public information.

Use of Proceeds

The Company intends to use the net proceeds from this ATM offering for general corporate purposes. This may include, but is not limited to, working capital, capital expenditures, repayment or refinancing of debt, acquisitions, and investments.

Legal and Compliance Highlights

• The offering is being made under the Company’s existing shelf registration statement, which means the shares are registered with the SEC and may be offered at the Company’s discretion.
• Kirkland & Ellis LLP has provided an opinion that the shares, when issued, will be validly issued, fully paid, and non-assessable.
• The Company and the sales agents have agreed to customary indemnification provisions against certain liabilities, including those under the Securities Act.
• The Company has undertaken to maintain compliance with all reporting, disclosure, and internal controls requirements, and that it is a “well-known seasoned issuer” as defined under SEC rules.
• The Company has committed to maintaining the listing of its common stock on the Nasdaq.
• The Company will disclose in its future quarterly and annual reports the number of shares sold under the ATM, the net proceeds received, and the compensation paid to agents.

Potential Price-Sensitive Factors for Shareholders

• Dilution Risk: The issuance of up to 5,000,000 new shares may dilute current shareholders’ ownership. The actual impact will depend on the total shares outstanding and the price at which these new shares are sold.
• Impact on Share Price: While ATM programs offer flexibility, the sale of large quantities of stock on the open market can put downward pressure on the share price, especially if investors perceive the capital raise as a sign of cash flow needs or anticipate dilution.
• Use of Proceeds Not Specified: The Company has left the use of proceeds broad (“general corporate purposes”), which may create some uncertainty for investors seeking clarity on strategic direction or specific capital allocation plans.
• Timing Around Earnings: The Company will not sell shares around earnings announcements or when in possession of material non-public information, which is designed to protect investors but may also limit the flexibility of the offering.
• Market Conditions: The ATM structure allows the Company to be opportunistic and raise capital as needed, but also exposes the Company to market volatility in the pricing of its shares.

What Investors Should Watch

• Monitor the Company’s 10-Q and 10-K filings for updates on shares sold, proceeds raised, and compensation paid under the ATM program.
• Pay attention to any announcements regarding the specific use of proceeds, such as debt paydown, acquisitions, or other strategic investments, as these could provide further insight into the Company’s plans and impact the stock’s performance.
• Track the Company’s share count and compare with the authorized ATM size to assess potential dilution and the pace of capital raising.
• Evaluate the Company’s overall financial condition and strategic rationale for raising equity capital at this time.

Conclusion

The launch of a \$5,000,000 share at-the-market offering is a significant event for Avis Budget Group shareholders. While it provides the Company with flexibility to strengthen its balance sheet or support strategic initiatives, it also introduces potential dilution and may impact the share price, depending on market conditions and the Company’s execution of the program.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions. The information herein is based on the Company’s public SEC filings as of March 27, 2026, and may be subject to change without notice.

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