NEW YORK, July 2, 2026, 19:06 EDT
- Avis traded at $163.44, up $16.55, or 11.3%. Hertz and other consumer discretionary names fell.
- Avis refinanced its $2 billion revolver out to 2031, according to a July 1 filing, and set up a new $200 million facility that has a maturity trigger if legal settlement proceeds top $500 million.
- Pentwater’s proposed settlement comes to $650 million, but still needs court signoff.
Avis Budget Group, Inc. NASDAQ:CAR jumped Thursday. A new credit filing gave the market a direct look at the $650 million Pentwater settlement. The cash is big enough to matter for equity holders, but some lenders already included much of it in debt paperwork.
The shares traded at $163.44, up $16.55, or 11.3%. At that price, Avis was worth roughly $5.77 billion. Given the share price and market cap, the $650 million settlement works out to about $18.40 per share. The stock’s gain Thursday covered about 90% of that figure.
| Market read-through | Latest figure | What the math says |
|---|---|---|
| Avis Budget Group, Inc. NASDAQ:CAR | $163.44, up 11.3% | Market cap up about $585 million |
| Pending Pentwater settlement | $650 million | Works out to about $18.40 per share |
| Settlement vs Avis market value | 11.3% | Roughly matches Thursday’s stock move |
| Settlement vs Thursday value gain | 111% | Cash payout tops the day’s market cap increase |
Avis Budget Car Rental, LLC has refinanced an existing $2 billion revolver with a new $2 billion facility set to mature on June 29, 2031, according to a July 1 filing. The company also added a $200 million revolving facility due June 29, 2028; that line could mature early, 10 business days after a group member gets more than $500 million from a legal settlement.
The clause is key. The $200 million facility isn’t a standard credit line. It would run alongside a settlement already over the trigger if a court signs off and the money comes in. The facility stands at 31% of the settlement size.
Avis said in a June 22 filing it struck a settlement and release deal with Pentwater Capital Management LP and its affiliates, looking to resolve a lawsuit over short-swing profits tied to Section 16(b) of the Securities Exchange Act. Payment depends on court OK and other terms, according to the filing.
| Balance sheet item | Size | Settlement comparison |
|---|---|---|
| Pending Pentwater settlement | $650 million | Base figure |
| Q1 cash and cash equivalents | $528 million | Settlement is 123% of cash |
| Q1 reported liquidity | $915 million | Settlement is 71% of liquidity |
| New 2028 revolver | $200 million | 31% of settlement |
| Refinanced 2031 revolver | $2.0 billion | 3.1 times settlement |
The settlement stands out compared to Avis’ recent results. For the first quarter, Avis posted $2.53 billion in revenue, a net loss of $283 million, and reported an adjusted EBITDA loss of $113 million. Cash and cash equivalents were $528 million as of March 31, with corporate debt at $6.04 billion.
Avis moved on its own. Hertz Global Holdings Inc. NASDAQ:HTZ dropped 4.1% to $2.12. SPDR S&P 500 ETF Trust (NYSEARCA:SPY) edged down 0.1%. State Street Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) lost 0.8%.
| Security | Last price | Day change |
|---|---|---|
| Avis Budget Group, Inc. NASDAQ:CAR | $163.44 | up 11.3% |
| Hertz Global Holdings Inc. NASDAQ:HTZ | $2.12 | down 4.1% |
| SPDR S&P 500 ETF Trust (NYSEARCA:SPY) | $744.78 | off 0.1% |
| State Street Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) | $117.12 | fell 0.8% |
The debt talks didn’t kick off this week. Back in June, Avis subsidiaries put out $300 million more of 8.000% senior notes due 2031. They said they wanted to use the new money, plus some cash on hand, to pay down some of the 5.750% senior notes maturing in 2027.
Avis shares are still feeling pressure after their April squeeze. Back then, Reuters said about 86.2% of Avis’ free float was shorted, with SRS Investment Management and Pentwater holding over 71% of the shares. Steve Sosnick, chief market analyst at Interactive Brokers, told Reuters that if these holders decided not to lend their shares, it could “create a short squeeze situation.” Reuters
Avis CEO Brian Choi said the company “executed on the changes” talked about earlier, as Avis reported first-quarter numbers. He referenced discipline with the fleet, pricing, and utilization. The company said revenue per day was up 3% in both the Americas and International business, not counting currency moves, and utilization reached 70% in each division. Avis Budget Group
U.S. stock markets will be shut on Friday, July 3, for the Independence Day holiday, Nasdaq’s 2026 holiday calendar shows.
