01—Abstract
Summary
Summary of the 8-K filed April 24, 2020. Cited figures are marked; the original filing is the authoritative source.
Expedia Group, Inc. announced on April 24, 2020, the pricing of a significant private placement of unsecured senior notes totaling $2.75 billiona.
This offering consists of $2 billionb in 6.250% notes due 2025 and $750 million in 7.000% notes due 2025, both issued at par. The primary stated use of proceeds is for general corporate purposes, with a specific mention of potentially repaying the company's 5.95% senior notes due in 2020. The consummation of this note offering is contingent upon the concurrent closing of a preferred stock and warrants private placement and effectiveness of credit facility amendments, as previously announced.
This move signals Expedia's proactive approach to managing its capital structure and liquidity during a period of economic uncertainty. Investors should note that the offering is made to qualified institutional buyers and outside the U.S., and the notes have not been registered under the Securities Act.
02—Key points
Key Highlights
- Expedia Group priced a $2.75 billion private placement of unsecured senior notes.
- The offering includes $2 billion of 6.250% notes and $750 million of 7.000% notes, both maturing in 2025.
- Notes were issued at 100% of their aggregate principal amount.
- Proceeds are intended for general corporate purposes, including potential repayment of 5.95% senior notes due 2020.
- The closing of the note offering is conditional on the closing of a preferred stock and warrants placement and credit facility amendments.
- The offering is being conducted to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.
- The filing includes a press release dated April 23, 2020, announcing the pricing.
03—Questions
Frequently Asked Questions
What is the total amount of debt Expedia Group is raising through this offering?
Expedia Group is raising a total of $2.75 billion through the private placement of unsecured senior notes.
What are the interest rates and maturity dates for these new notes?
The offering consists of $2 billion of 6.250% senior notes due 2025 and $750 million of 7.000% senior notes due 2025.
What does Expedia Group intend to do with the proceeds from these notes?
The net proceeds are intended for general corporate purposes, which may include the repayment or redemption of the company's 5.95% senior notes due 2020.
Is the issuance of these notes guaranteed?
Yes, the Notes will be guaranteed by certain subsidiaries of Expedia Group.
Are there any conditions to the closing of this offering?
Yes, the closing is subject to the concurrent closing of a private placement of preferred stock and warrants and the effectiveness of credit facility amendments, along with customary closing conditions.
04—Continue