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Expedia Group, Inc. 8-K Report, Corporate Update (May 13, 2022)

Reports
Other Events
Filing Date
Filed May 13, 2022
Period End
May 13, 2022
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 · Apr ’19Apr ’19
  3. Leadership change8-K · May ’21May ’21
  4. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed May 13, 2022. Cited figures are marked; the original filing is the authoritative source.

Expedia Group, Inc. (EXPE) announced on May 13, 2022, its intention to redeem its outstanding senior notes.

Specifically, the company will redeem all $500 milliona of its 3.600% Senior Notes due 2023 on May 30, 2022, and all $500 million of its 4.500% Senior Notes due 2024 on June 13, 2022. This proactive debt management strategy suggests the company may be taking advantage of favorable market conditions or optimizing its capital structure.

Investors should note that the redemption price will be determined based on the terms of the respective indentures, calculated as the greater of par value or a present value calculation based on the Treasury Rate plus a specified spread, plus accrued interest. This move signals Expedia's financial health and its ability to manage its debt obligations effectively, potentially reducing future interest expenses and financial leverage.

02—Key points

Key Highlights

  1. Expedia Group to redeem $500 million of 3.600% Senior Notes due 2023 on May 30, 2022.
  2. Expedia Group to redeem $500 million of 4.500% Senior Notes due 2024 on June 13, 2022.
  3. The company is proactively managing its debt obligations.
  4. Redemption prices will be calculated based on indenture terms, potentially above par value.
  5. This action indicates strong financial standing and confidence in future cash flows.
  6. The company aims to optimize its capital structure and potentially reduce future interest costs.

03—Questions

Frequently Asked Questions

  1. What is the total principal amount of debt Expedia Group is redeeming?

    Expedia Group is redeeming a total of $1 billion in principal amount, comprising $500 million of its 3.600% Senior Notes due 2023 and $500 million of its 4.500% Senior Notes due 2024.

  2. When will the debt redemptions take place?

    The 3.600% Senior Notes due 2023 will be redeemed on May 30, 2022, and the 4.500% Senior Notes due 2024 will be redeemed on June 13, 2022.

  3. How is the redemption price calculated?

    The redemption price for both sets of notes will be the greater of (i) 100% of the aggregate principal amount or (ii) the sum of the present values of the remaining scheduled payments discounted at the Treasury Rate plus a specified spread (50 basis points for the 2023 notes, 35 basis points for the 2024 notes). In both cases, accrued and unpaid interest up to the redemption date is also included.

  4. What does this debt redemption imply for Expedia Group's financial strategy?

    This proactive redemption suggests that Expedia Group may be capitalizing on favorable interest rate environments, refinancing debt at potentially lower costs, or optimizing its balance sheet. It signals financial strength and the company's ability to manage its capital structure effectively.

04—Continue

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