8-KMaterial AgreementsFinancial EventsExhibits & Filings

Expedia Group, Inc. 8-K Report, Material Agreement (Sep 2, 2011)

Filed September 2, 2011For Securities:EXPE

Summary

This 8-K filing by Expedia, Inc. on September 2, 2011, primarily concerns the Second Amendment to its revolving credit facility, originally dated February 8, 2010. The amendment, effective August 31, 2011, extends the facility's maturity date to August 31, 2016. Importantly, it also reduces the interest rate spread on drawn amounts and the commitment fee on undrawn amounts, indicating improved borrowing costs for the company. This renegotiation suggests a positive step for Expedia's financial flexibility and cost management.

Key Highlights

  • 1Expedia, Inc. entered into the Second Amendment to its revolving credit facility on August 31, 2011.
  • 2The maturity date of the revolving credit facility has been extended to August 31, 2016.
  • 3The interest rate spread on drawn amounts has been reduced by 87.5 to 100 basis points.
  • 4The commitment fee on undrawn amounts has been reduced by 7.5 to 25 basis points.
  • 5The Second Amendment clarifies that the spin-off of Expedia's TripAdvisor Media Group assets and operations is permitted under the credit facility.
  • 6The amendment includes other modifications to covenants and terms of the facility.

Frequently Asked Questions

The main purpose of this 8-K filing is to report on the Second Amendment to Expedia's existing revolving credit facility, which was entered into on August 31, 2011.

The amendment extends the maturity date of the credit facility by five years to August 31, 2016, and importantly, it reduces the interest rate spread on drawn amounts and the commitment fee on undrawn amounts, leading to lower borrowing costs for Expedia.

Yes, the Second Amendment explicitly clarifies that the spin-off of Expedia's domestic and international assets and operations associated with its TripAdvisor Media Group is permitted under the terms of the revolving credit facility.

The main parties involved are Expedia, Inc. (as the borrower), various subsidiaries, JPMorgan Chase Bank, N.A. (as Administrative Agent), and J.P. Morgan Europe Limited (as London Agent), along with the lenders party to the agreement.