Summary
Expedia Group, Inc. announced on April 24, 2020, the pricing of a significant private placement of unsecured senior notes totaling $2.75 billion. This offering consists of $2 billion 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.
Key Highlights
- 1Expedia Group priced a $2.75 billion private placement of unsecured senior notes.
- 2The offering includes $2 billion of 6.250% notes and $750 million of 7.000% notes, both maturing in 2025.
- 3Notes were issued at 100% of their aggregate principal amount.
- 4Proceeds are intended for general corporate purposes, including potential repayment of 5.95% senior notes due 2020.
- 5The closing of the note offering is conditional on the closing of a preferred stock and warrants placement and credit facility amendments.
- 6The offering is being conducted to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.
- 7The filing includes a press release dated April 23, 2020, announcing the pricing.