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Avis Budget refinances fleet with new asset-backed notes

Story Highlights
  • Avis Budget’s Interpace Funding unit issued $965 million of fleet-backed asset-backed securities.
  • The company used the new issuance to fully repay $965 million of older fleet-backed variable funding notes.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Avis Budget refinances fleet with new asset-backed notes

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An announcement from Avis Budget ( (CAR) ) is now available.

On December 30, 2025, Avis Budget’s subsidiary Interpace Funding LLC issued $965 million in alternative funding asset-backed securities secured by vehicles in the company’s U.S. fleet and related assets, structured as floating-rate Class A Notes and fixed-rate Class B and Class C Notes with a targeted two-year term and final maturity in June 2028. The following day, December 31, 2025, the company used the proceeds to fully repay $965 million of previously outstanding asset-backed variable funding notes issued by its Avis Budget Rental Car Funding (AESOP) LLC unit, effectively refinancing its fleet-backed debt and maintaining access to structured financing while potentially optimizing its capital structure and funding costs.

The most recent analyst rating on (CAR) stock is a Hold with a $142.00 price target. To see the full list of analyst forecasts on Avis Budget stock, see the CAR Stock Forecast page.

Spark’s Take on CAR Stock

According to Spark, TipRanks’ AI Analyst, CAR is a Neutral.

Avis Budget’s overall stock score is primarily impacted by its financial performance and valuation concerns. High leverage and negative profitability weigh heavily on the score. Technical analysis indicates bearish momentum, further contributing to the low score. Despite some positive aspects from the earnings call, the significant challenges faced by the company overshadow these, resulting in a low overall score.

To see Spark’s full report on CAR stock, click here.

More about Avis Budget

Avis Budget operates in the global car rental and mobility services industry, generating revenue primarily by providing short- and long-term vehicle rentals through brands that serve both consumer and commercial customers. Its operations rely heavily on financing structures backed by its large domestic vehicle fleet and related assets, which are routinely used as collateral in asset-backed securities and other funding facilities.

Average Trading Volume: 750,575

Technical Sentiment Signal: Hold

Current Market Cap: $4.51B

For an in-depth examination of CAR stock, go to TipRanks’ Overview page.

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