Summary
Priceline.com Incorporated (now Booking Holdings Inc.) announced on March 10, 2010, the completion of a private placement of $575 million in aggregate principal amount of 1.25% Convertible Senior Notes due 2015. The company secured approximately $561.7 million in net proceeds after deducting discounts and expenses. These notes are general unsecured senior obligations and rank equally with the company's other senior unsecured debt. The issuance aims to provide additional capital, likely for general corporate purposes or strategic initiatives, enhancing the company's financial flexibility.
Key Highlights
- 1Priceline.com Inc. issued $575 million in 1.25% Convertible Senior Notes due 2015.
- 2Net proceeds from the offering are estimated at $561.7 million after fees and discounts.
- 3The notes were sold in a private placement under Section 4(2) of the Securities Act of 1933, to qualified institutional buyers under Rule 144A.
- 4The notes mature on March 15, 2015, and bear a 1.25% annual interest rate, payable semi-annually.
- 5The conversion price is approximately $303.06 per share, representing a 30% premium over the March 4, 2010, closing stock price.
- 6Holders can convert notes under specific conditions related to stock price performance, corporate distributions, or significant corporate events (like mergers).
- 7The company cannot redeem the notes prior to maturity, but customary events of default and acceleration clauses are included in the indenture.