Avis Budget Group, Inc. (NASDAQ: CAR) shares experienced a notable surge of 6.55%, reaching $196.01 in the current trading session. The traded volume of Avis Budget stock, according to the latest data on the US charts, amounted to 423,000 shares, a figure juxtaposed against the average daily volume of 468,000 shares. The upswing in CAR stock was precipitated by the divulgence of a forthcoming dividend distribution.
Today, Avis Budget (CAR) disclosed a proclamation by its Board of Directors regarding a distinctive cash dividend of $10.00 per share of common stock. This particular cash dividend is slated for disbursement on December 21, 2023, targeting stockholders recorded as such by the close of business on December 15, 2023.
Furthermore, Avis Budget has successfully acquired around 1.3 million shares of its common stock during the current quarter of 2023, amounting to an overall purchase cost of approximately $240 million. The company still retains the capacity to repurchase shares, with approximately $820 million earmarked for this purpose under its existing share repurchase program.
CAR anticipates the ongoing retirement of shares throughout the remainder of 2023 and beyond, contingent upon prevailing market conditions and other relevant factors. Recent financial activities by Avis Budget’s wholly-owned subsidiaries, Avis Budget Car Rental, LLC, and Avis Budget Finance, Inc., involve the pricing of a private offering totaling $500 million in aggregate principal amount of 8.00% senior notes, due to mature on February 15, 2031.
The closing of this notes offering was anticipated to transpire on November 22, 2023, contingent upon meeting customary closing conditions. The notes will be issued at an issue price of 99.341% and bear the guarantee of the Company and certain U.S. subsidiaries on a senior unsecured basis. The Company’s strategic allocation of the net proceeds from the notes offering encompasses the redemption of all outstanding 4.500% senior notes due in 2025 issued by Avis Budget Finance plc.
Additionally, a portion of the funds will be utilized to repay a segment of its floating rate term loan C maturing in 2029, alongside covering associated fees and expenses. The residual funds are earmarked for general corporate purposes.
