Summary
Expedia, Inc. filed a Form 8-K on July 14, 2005, to report a significant material definitive agreement. Specifically, on July 8, 2005, the company entered into a new unsecured $1 billion, five-year revolving credit facility. This facility is intended to support general corporate purposes and includes Expedia, Inc. (Delaware), Expedia, Inc. (Washington), Travelscape, Inc., Hotels.com, and Hotwire, Inc. as borrowers. The availability of this credit facility is contingent upon the completion of Expedia's spin-off from IAC/InterActiveCorp. The agreement highlights Expedia's strategic move to secure substantial financing ahead of its separation, ensuring operational flexibility and funding for future growth initiatives. Investors should note the significant credit line and its importance for the company's post-spin-off financial structure.
Key Highlights
- 1Entry into a material definitive agreement for a new credit facility.
- 2New unsecured revolving credit facility valued at $1 billion.
- 3The credit facility has a five-year term.
- 4The facility is available for general corporate purposes.
- 5Multiple Expedia subsidiaries are listed as borrowers: Expedia, Inc. (DE), Expedia, Inc. (WA), Travelscape, Inc., Hotels.com, and Hotwire, Inc.
- 6The credit facility's effectiveness is subject to the completion of Expedia's spin-off from IAC/InterActiveCorp.