Summary
Expedia, Inc. (EXPE) filed an 8-K on December 1, 2015, to report the pricing of a private placement of $750 million in 5.000% senior unsecured notes due 2026. These notes will be issued at a slight discount (99.535% of par) and are guaranteed by certain Expedia subsidiaries. The primary purpose of this debt issuance is to fund a portion of the cash consideration for the previously announced acquisition of HomeAway, Inc. and to potentially refinance HomeAway's existing debt. The issuance is expected to close on December 8, 2015, subject to customary closing conditions. This filing is significant for investors as it details Expedia's financing strategy for a major acquisition, providing insight into the company's capital structure and its commitment to integrating HomeAway. Investors should note the interest rate, maturity date, and the intended use of proceeds. The report also includes standard forward-looking statements and disclosures regarding risks associated with the acquisition and the company's overall business operations, highlighting potential uncertainties that could impact future performance.
Key Highlights
- 1Expedia priced a $750 million private placement of 5.000% senior unsecured notes due 2026.
- 2The notes are offered at 99.535% of their aggregate principal amount.
- 3Proceeds will be used to fund the acquisition of HomeAway, Inc. and potentially refinance HomeAway's debt.
- 4The private placement is expected to close on December 8, 2015.
- 5The notes will be guaranteed by certain Expedia subsidiaries.
- 6The offering is made to qualified institutional buyers and outside the U.S. under Rule 144A and Regulation S, respectively.
- 7The filing includes forward-looking statements and a comprehensive list of risks related to the HomeAway acquisition and Expedia's business.