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Long-term Corporate Debt and Borrowing Arrangements | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
Long-term Corporate Debt and Borrowing Arrangements | Long-term Corporate Debt and Borrowing Arrangements Long-term debt and other borrowing arrangements consisted of:
| Maturity Date |  | As of December 31,
| 2023 |  | 2022
4.125% euro-denominated Senior Notes | November 2024 |  | $ | — |  |  | $ | 321 |
4.500% euro-denominated Senior Notes | May 2025 |  | — |  |  | 268 |
4.750% euro-denominated Senior Notes | January 2026 |  | 386 |  |  | 375 |
5.750% Senior Notes | July 2027 |  | 736 |  |  | 732 |
4.750% Senior Notes | April 2028 |  | 500 |  |  | 500 |
5.375% Senior Notes | March 2029 |  | 600 |  |  | 600 |
7.250% euro-denominated Senior Notes | July 2030 |  | 441 |  |  | — |
8.000% Senior Notes | February 2031 |  | 497 |  |  | — |
Floating Rate Term Loan (a) | August 2027 |  | 1,164 |  |  | 1,176 |
Floating Rate Term Loan (a) | March 2029 |  | 524 |  |  | 725 |
Other (b) |  |  | 30 |  |  | 18 |
Deferred financing fees |  |  | (55) |  |  | (44) |
Total |  |  | 4,823 |  |  | 4,671 |
Less: Short-term debt and current portion of long-term debt |  |  | 32 |  |  | 27 |
Long-term debt |  |  | $ | 4,791 |  |  | $ | 4,644 |
_________ (a)The floating rate term loans are part of our senior revolving credit facility, which is secured by pledges of capital stock of certain of our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. (b)Primarily includes finance leases which are secured by liens on the related assets. Term Loan Floating Rate Term Loan due 2027. In February 2020, we amended our Floating Rate Term Loan and extended its maturity term to 2027. As of December 31, 2023, the loan bears interest at one-month Secured Overnight Financing Rate (“SOFR”) plus 1.75%, for an aggregate rate of 7.22%; however, we entered into an interest rate swap to hedge $750 million of our interest rate exposure related to the floating rate term loan at an aggregate rate of 3.26%. Floating Rate Term Loan due 2029. In March 2022, we entered into a $750 million Floating Rate Term Loan due March 2029, at a price of 97% of the aggregate principal amount, with interest paid monthly. In December 2023, we redeemed approximately $200 million of our outstanding balance using the proceeds from the issuance of our 8.000% Senior Notes due February 2031. The Term Loan bears interest at one-month SOFR plus 3.00% for an aggregate rate of 8.46%. Senior Notes 4.125% euro-denominated Senior Notes due 2024. In September 2016, we issued €300 million of 4.125% euro-denominated Senior Notes due 2024 at par, with interest payable semi-annually. We have the right to redeem these notes in whole or in part at any time on or after November 15, 2019 at specified redemption prices plus accrued interest. In October 2016, we used the net proceeds from the offering primarily to redeem €275 million of our outstanding 6.000% euro-denominated Senior Notes due 2021. We redeemed these notes in September 2023 using the proceeds from our 7.250% euro-denominated Senior Notes due July 2030. 4.500% euro-denominated Senior Notes due 2025. In March 2017, we issued €250 million of 4.500% euro-denominated Senior Notes due 2025, at par, with interest payable semi-annually. We have the right to redeem these notes in whole or in part on or after May 15, 2020 at specified redemption prices plus accrued interest. In April 2017, we used the net proceeds from the offering to redeem our outstanding €175 million principal amount of 6.000% euro-denominated Senior Notes due 2021 for €180 million plus accrued interest. In June 2017, we used the remaining proceeds to redeem a portion of our Floating Rate Senior Notes due 2017. We redeemed these notes in November 2023 using the proceeds from our 8.000% Senior Notes due February 2031. 4.750% euro-denominated Senior Notes due 2026. In October 2018, we issued €350 million of 4.750% euro-denominated Senior Notes due 2026, at par, with interest payable semi-annually. We have the right to redeem these notes in whole or in part on or after September 30, 2021 at specified redemption prices plus accrued interest. In October 2018, we used the net proceeds from the offering to redeem our 5.125% Senior Notes due June 2022 for $410 million plus accrued interest. 5.750% Senior Notes due 2027. In July 2019, we issued $400 million of 5.750% Senior Notes due July 2027, at par, with interest payable semi-annually. We used the net proceeds from the offering to redeem $400 million principal amount of our 5.500% Senior Notes due April 2023. In August 2020, we issued $350 million of additional 5.750% Senior Notes due July 2027, at 92% of face value, under the indenture governing our existing 5.750% Senior Notes. We used the proceeds from this offering to redeem the outstanding $100 million in aggregate principal amount of our 5.500% Senior Notes due 2023, with the remainder being used for general corporate purposes. 4.750% Senior Notes due 2028. In March 2021, we issued $500 million of 4.750% Senior Notes du e April 2 028, at par, with interest paid semiannually. We have the right to redeem these notes in whole or in part at any time on or after April 1, 2024 at specified redemption prices plus accrued interest. Net proceeds, together with cash on hand, were used to redeem all of the outstanding 6.375% Senior Notes due 2024 for $356 million plus accrued interest and a portion of our outstanding 5.250% Senior Notes due 2025 for $142 million plus accrued interest. 5.375% Senior Notes due 2029. In March 2021, we issued $600 million of 5.375% Senior Notes due March 2029, at par, with interest paid semiannually. We have the right to redeem these notes in whole or in part at any time on or after March 1, 2024 at specified redemption prices plus accrued interest. Net proceeds, together with cash on hand, were used to redeem all of the outstanding 10.500% Senior Secured Notes due 2025 for $599 million plus accrued interest. 7.250% euro-denominated Senior Notes due July 2030. In July 2023, we issued €400 million of 7.250% euro-denominated Senior Notes due July 2030, at par, with interest payable semi-annually. We have the right to redeem these notes in whole or in part at any time on or after July 2026 at a specified redemption price plus accrued interest. In September 2023, we used net proceeds from the offering primarily to redeem all of the €300 million of our outstanding 4.125% euro-denominated Senior Notes due 2024 plus accrued interest. 8.000% Senior Notes due February 2031. In November 2023, we issued $500 million of 8.000% Senior Notes due February 2031, at 99.3% of face value, with interest payable semi-annually. We have the right to redeem these notes in whole or in part at any time on or after November 2026 at a specified redemption price plus accrued interest. Net proceeds were used to fully redeem our 4.500% euro-denominated Senior Notes due 2025 and a portion of our outstanding balance on our Term Loan due 2029, with the remainder being used for general corporate purposes. In connection with the debt amendments and repayments for the years ended December 31, 2023 and 2021, we record ed $5 million and $136 million in early extinguishment of debt costs, respectively. The 5.750% Senior Notes, the 4.750% Senior Notes, the 5.375% Senior Notes and the 8.000% Senior Notes are senior unsecured obligations of our Avis Budget Car Rental, LLC (“ABCR”) subsidiary, are guaranteed by us and certain of our domestic subsidiaries and rank equally in right of payment with all of our existing and future senior unsecured indebtedness. The 4.125% euro-denominated Senior Notes and 4.500% euro-denominated Senior Notes were, and the 4.750% euro-denominated Senior Notes and the 7.250% euro-denominated Senior Notes are, unsecured obligations of our Avis Budget Finance plc subsidiary, and are (or were) guaranteed on a senior basis by us and certain of our domestic subsidiaries and rank (or ranked) equally with all of our existing senior unsecured debt. Debt Maturities The following table provides contractual maturities of our corporate debt at December 31, 2023:
Year | Amount
2024 (a) | $ | 32 |
2025 | 25 |
2026 | 408 |
2027 | 1,872 |
2028 | 506 |
Thereafter | 2,035 |
| $ | 4,878 |
__________ (a)These short-term borrowings have weighted average interest rates which range from 6.19% to 6.68% as of December 31, 2023. Committed Credit Facilities And Available Funding Arrangements At December 31, 2023, the committed corporate credit facilities available to us and/or our subsidiaries were as follows:
| Total Capacity |  | Outstanding Borrowings |  | Letters of Credit Issued |  | Available Capacity
Senior revolving credit facility maturing 2028 (a) | $ | 2,000 |  |  | $ | — |  |  | $ | 1,739 |  |  | $ | 261 |
__________ (a)The senior revolving credit facility bears interest at one-month SOFR plus 1.75% and is part of our senior credit facilities, which include the floating rate term loan and the senior revolving credit facility, and which are secured by pledges of capital stock of certain of our subsidiaries, and liens on substantially all of our intellectual property and certain other real and personal property. In December 2023, we amended our senior revolving credit facility and extended its maturity term to December 2028. Debt Covenants The agreements governing our indebtedness contain restrictive covenants, including restrictions on dividends paid to us by certain of our subsidiaries, the incurrence of additional indebtedness and/or liens by us and certain of our subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions. Our senior credit facility also contains a maximum leverage ratio requirement. As of December 31, 2023, we were in compliance with the financial covenants governing our indebtedness.

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