8-KMaterial AgreementsExhibits & Filings

Expedia Group, Inc. 8-K Report, Material Agreement (Dec 27, 2006)

Filed December 27, 2006For Securities:EXPE

Summary

Expedia, Inc. (EXPE) filed a Form 8-K on December 27, 2006, reporting a material definitive agreement. Specifically, on December 21, 2006, effective December 18, 2006, the company entered into a Second Amendment to its Credit Agreement dated July 8, 2005. This amendment primarily adjusted the consolidated net worth requirement for the borrowers, which include various Expedia subsidiaries. This filing is important for investors as it pertains to the company's debt structure and financial covenants. Changes to net worth requirements can indicate flexibility in financial operations or potentially signal a response to financial performance. Investors should note the parties involved in the credit agreement, including major financial institutions like Bank of America, N.A., Wachovia Bank, N.A., The Royal Bank of Scotland PLC, and JPMorgan Chase Bank, N.A., highlighting the significant banking relationships Expedia maintains.

Key Highlights

  • 1Expedia, Inc. entered into a Second Amendment to its Credit Agreement.
  • 2The amendment was effective as of December 18, 2006, and reported on December 21, 2006.
  • 3The primary change in the amendment is a reduced consolidated net worth requirement.
  • 4The Credit Agreement originally dates back to July 8, 2005.
  • 5Multiple Expedia subsidiaries are listed as borrowers under the agreement, including Expedia, Inc. (Delaware & Washington), Travelscape LLC, Hotels.com, and Hotwire, Inc.
  • 6Key financial institutions involved include JPMorgan Chase Bank, N.A. (Administrative Agent) and Bank of America, N.A. (Syndication Agent).

Frequently Asked Questions

This 8-K filing announces Expedia, Inc.'s entry into a Second Amendment to its Credit Agreement. The most significant change reported is a reduction in the consolidated net worth requirement for the company and its subsidiaries.

Changes to financial covenants like net worth requirements can impact a company's operational flexibility and its ability to meet debt obligations. A reduced requirement might provide Expedia with more financial flexibility, but investors should understand the context and any underlying reasons for this change.

The borrowers include several Expedia entities: Expedia, Inc. (both Delaware and Washington corporations), Travelscape LLC, Hotels.com, and Hotwire, Inc. The credit facilities are managed by JPMorgan Chase Bank, N.A. as the Administrative Agent, with Bank of America, N.A. serving as the Syndication Agent.

This filing specifically addresses an amendment to the terms of an existing credit agreement, primarily concerning a financial covenant (net worth requirement). It does not explicitly state an increase or decrease in the total debt amount. Investors would need to refer to the full amendment or other financial reports for details on debt levels.