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Expedia Group, Inc. 8-K Report, Financial Obligation (Mar 18, 2020)

Reports
Financial Events
Filing Date
Filed March 18, 2020
Period End
March 18, 2020
Security
EXPE
In the record · 2016–202610-K1510-Q338-K144

EXPE filed 15 annual reports (10-K), 33 quarterly reports (10-Q) and 144 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’16Oct ’16
  2. Material agreement8-K · Jun ’19Jun ’19
  3. Leadership change8-K · Jun ’22Jun ’22
  4. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed March 18, 2020. Cited figures are marked; the original filing is the authoritative source.

Expedia Group, Inc. (EXPE) announced on March 18, 2020, that it borrowed $1.9 billiona under its existing $2 billion revolving credit facility.

This action was taken as a precautionary measure to bolster liquidity and financial flexibility in response to the significant disruption and uncertainty caused by the COVID-19 outbreak. The borrowed funds are intended for general corporate purposes, including working capital needs. This borrowing highlights management's proactive approach to managing cash flow during an unprecedented economic downturn.

Investors should note that while this provides immediate financial support, the ongoing impact of COVID-19 on travel demand remains a significant concern. The company's ability to navigate the pandemic and its associated economic fallout will be critical for future performance.

02—Key points

Key Highlights

  1. Expedia Group borrowed $1.9 billion under its $2 billion revolving credit facility.
  2. The borrowing occurred on March 18, 2020.
  3. The loan matures on May 31, 2023.
  4. Interest rate is based on adjusted LIBOR plus a spread of 1.125%.
  5. The borrowing was a precautionary measure due to COVID-19 uncertainty.
  6. Proceeds are available for general corporate purposes and working capital.
  7. This action aims to increase liquidity and preserve financial flexibility.

03—Questions

Frequently Asked Questions

  1. Why did Expedia borrow $1.9 billion?

    Expedia borrowed $1.9 billion as a precautionary measure to increase its liquidity and preserve financial flexibility. This was in response to the significant disruption and uncertainty caused by the COVID-19 outbreak.

  2. What is the maturity date for this loan?

    The Revolving Loan borrowed on March 18, 2020, matures on May 31, 2023.

  3. How will the borrowed funds be used?

    The proceeds from the Revolving Loan will be used for general corporate purposes, including working capital needs.

  4. What is the interest rate on the borrowed amount?

    The loan bears interest at a per annum rate equal to adjusted LIBOR plus a spread that currently is 1.125%, based on the company's debt ratings.

04—Continue

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