Summary
Priceline.com Incorporated (now Booking Holdings Inc.) announced on September 26, 2007, that it entered into a new Credit Agreement with a syndicate of lenders. This agreement establishes a revolving line of credit totaling $175.0 million, with the option to increase this by an additional $100.0 million through an expanded revolving facility or new term loans. The primary purpose of this facility is to provide working capital and support general corporate needs. This new credit facility offers flexibility with multi-currency options for borrowings, including U.S. dollars and Euros, and allows for the issuance of up to $50.0 million in letters of credit. While the company had no immediate plans to draw on the credit line at the time of the filing, the agreement provides a crucial financial backstop for future operational and strategic initiatives. The facility is secured by substantially all of the Company's U.S. assets and is guaranteed by its domestic and foreign subsidiaries, with provisions for specific exceptions and limitations.
Key Highlights
- 1Entry into a new $175.0 million revolving credit facility, with an option to expand by an additional $100.0 million.
- 2Funds are designated for working capital and general corporate purposes.
- 3Revolving credit facility includes a sub-limit of $50.0 million for letters of credit.
- 4Borrowings can be made in multiple currencies, including USD and EUR, as well as Pounds Sterling.
- 5The credit facility is secured by substantially all of the Company's U.S. assets and guaranteed by its subsidiaries.
- 6The agreement includes covenants restricting the company's ability to incur debt, dispose of assets, merge, or pay dividends, among other limitations.
- 7The credit facility has a maturity date of September 26, 2012, with provisions for early termination by the company without penalty.
- 8A commitment fee is payable on the unutilized portion of the credit line.