Summary
Expedia Group, Inc. (EXPE) announced the completion of a $1.25 billion private placement of 3.25% senior unsecured notes due February 2030 on September 19, 2019. The net proceeds of approximately $1,231 million are intended for general corporate purposes, which may include debt repayment, working capital, capital expenditures, acquisitions, dividends, or stock repurchases. These notes rank equally with existing and future unsecured and unsubordinated obligations of Expedia Group and its subsidiary guarantors. Furthermore, Expedia Group entered into a registration rights agreement, obligating them to file a registration statement for an exchange offer of these notes for registered notes within 365 days. Failure to comply with this agreement will result in a 0.25% annual increase in interest paid to noteholders. Investors should note the covenants and events of default outlined in the indenture, which could lead to acceleration of debt. The company has the option to redeem the notes before maturity under specific conditions, including a make-whole premium prior to November 2029 and at par thereafter.
Key Highlights
- 1Completion of a $1.25 billion private placement of 3.25% senior unsecured notes due February 2030.
- 2Net proceeds of approximately $1,231 million raised from the note issuance.
- 3Proceeds are earmarked for general corporate purposes, including potential debt reduction, investments, and share buybacks.
- 4The notes are senior unsecured obligations, ranking equally with other unsecured and unsubordinated debt.
- 5Subsidiary guarantors provide full and unconditional guarantees for the notes.
- 6A registration rights agreement mandates Expedia to register these notes within 365 days, with penalties for non-compliance.
- 7The company can redeem the notes prior to maturity, with a make-whole premium or at par depending on the redemption date.