SEATTLE, April 23, 2020 /PRNewswire/ -- Expedia
Group, Inc. (NASDAQ: EXPE) announced today that it is raising
approximately $3.2 billion of new
capital, consisting of a $1.2 billion
private placement of perpetual preferred stock and approximately
$2 billion in new debt
financing. These efforts are part of a comprehensive strategy
to enhance Expedia Group's financial flexibility and strengthen its
liquidity position. Investment funds managed by affiliates of
Apollo Global Management, Inc. and Silver
Lake, two of the world's leading alternative asset
investors, are providing the equity investment. David Sambur,
Co-Lead Partner of Apollo's private equity business, and
Greg Mondre, Co-CEO and Managing
Partner of Silver Lake, will join
the Expedia Group Board of Directors upon the closing of the fund
raising transactions, which is expected on May 5, 2020.
"Between the significant steps Expedia Group continues to take
to simplify the business, the talented leaders I have gotten to
know over the last several months, and this new funding, we are in
better position to continue to rise to the current challenge and
come out even stronger than before – we understand the financial
challenges ahead and we will continue to prudently address those
needs," said Peter Kern, Vice
Chairman, Expedia Group. "We are excited to have Apollo and
Silver Lake as valued partners in
this effort as they share our strong belief in the long-term growth
of Expedia and look forward to David and Greg's invaluable insights
as Board members."
"Expedia is a world-class company with an unparalleled
collection of online travel brands and access to vast diversified
travel supply, and we are thrilled to partner with management and
the Board to drive its continued growth and innovation. This
investment helps ensure the company has the resources to sustain
market leadership and emerge from the current economic environment
stronger than ever," said Reed
Rayman, a Partner in Private Equity at Apollo.
"Investing significant new equity in a company of Expedia's global
scale and reach will help strengthen its financial position to
continue to serve millions of travelers worldwide," added
Jason Scheir, Apollo Partner and Head of US Hybrid Value.
Greg Mondre and Joe Osnoss, Managing Partners of Silver Lake, commented, "Our firm has long
admired Expedia as a true e-commerce pioneer that has helped define
how people use technology to book and experience travel. We
are honored to partner with Barry, Peter, the Board, and management
as Expedia embarks on its strategy for continued leadership and
growth well into the future."
Recent Developments and Preliminary Financial
Estimates
More detailed descriptions of the transactions
outlined above were included in a current report filed by Expedia
Group with the SEC today, which is available on the Company's
Investor Relations website. The SEC report also includes an
update regarding the Expedia Group's business and financial
performance, including preliminary estimates for certain
operational and financial metrics for the quarter ended
March 31, 2020. The
Company has not yet completed its standard financial close
procedures for the quarter and final results may differ materially
from the estimates included today.
Advisors
J.P. Morgan and Moelis & Company LLC are
serving as joint financial advisors and placement agents to Expedia
Group and Wachtell, Lipton, Rosen & Katz is acting as legal
counsel. Evercore is acting as lead financial advisor to
Apollo; Goldman Sachs & Co. LLC is also advising Apollo.
Sidley Austin LLP and Paul, Weiss, Rifkind, Wharton & Garrison
LLP are serving as legal counsel to Apollo. Simpson Thacher
& Bartlett LLP is serving as legal counsel to Silver Lake.
This release does not constitute an offer to sell or the
solicitation of an offer to purchase any securities of Expedia
Group or any other person. Any securities that may be offered by
Expedia Group in the future in connection with a potential
transaction will not be registered under the Securities Act of
1933, as amended (the "Securities Act"), or the securities laws of
any state or any other applicable securities laws and will be
issued in reliance upon exemptions from the registration
requirements of the securities act and such laws. The potential
transaction discussed herein is not an offering in any jurisdiction
where the making of such offer on the terms provided herein is not
permitted by law. No federal, state or foreign securities
commission or regulatory authority has confirmed the accuracy or
completeness or determined the adequacy of this document or any
securities that may be offered in the future in connection with a
potential transaction.
Forward Looking Statements
This press release contains
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements reflect current expectations and
projections about future events, are based on currently available
information and are inherently subject to uncertainties, risks and
changes in circumstances that are difficult to predict.
Actual results and the timing and outcome of events may differ
materially from those expressed or implied in the forward-looking
statements for a variety of reasons, including, among
others: risks related to the ongoing global coronavirus
(COVID-19) pandemic and the significant adverse global impact that
it has had on the travel industry and our business; an increasingly
competitive global environment, as well as other risks detailed in
our public filings with the SEC, including our annual report on
Form 10-K for the year ended December 31,
2019 and our current report Form 8-K filed with the SEC on
April 23, 2020. Other unknown
or unpredictable factors also could have a material adverse effect
on our business, financial condition and results of
operations. In addition, in light of these risks and
uncertainties, the matters referred to in the forward-looking
statements contained in this press release may not in fact
occur. Accordingly, you should not place undue reliance on
those statements. We are not under any obligation, and do not
intend, to publicly or otherwise update, review or revise any
forward-looking statement or other statement in this document,
whether as a result of new information, future events or otherwise,
even if experience or future events make it clear that any expected
results express or implied by these forward-looking statements will
not be realized.
About Expedia Group
Expedia Group (NASDAQ: EXPE) helps
knock down the barriers to travel, making it easier, more
enjoyable, more attainable and more accessible. We are here to
bring the world within reach for customers and partners around the
globe. We leverage our platform and technology capabilities across
an extensive portfolio of businesses and brands to orchestrate the
movement of people and the delivery of travel experiences on both a
local and global basis. Our family of travel brands includes: Brand
Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, Egencia®,
trivago®, HomeAway®, Orbitz®, Travelocity®, Hotwire®, Wotif®,
ebookers®, CheapTickets®, Expedia Group™ Media Solutions, Expedia
Local Expert®, CarRentals.com™, Expedia® CruiseShipCenters®,
Classic Vacations®, Traveldoo®, VacationRentals.com and
SilverRail™.
© 2020 Expedia, Inc. All rights reserved. Trademarks and logos
are the property of their respective owners. CST: 2029030-50
About Apollo
Apollo is a leading global alternative
investment manager with offices in New
York, Los Angeles,
San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong
Kong, Shanghai and
Tokyo. Apollo had assets under
management of approximately $331
billion as of December 31,
2019 in credit, private equity and real assets funds
invested across a core group of nine industries where Apollo has
considerable knowledge and resources.
About Silver
Lake
Silver Lake is
the global leader in technology investing, with over $40 billion in combined assets under management
and committed capital and a team of approximately 100 investment
and operating professionals located in Silicon Valley, New York, London and Hong
Kong. Silver Lake's
portfolio of investments collectively generates more than
$230 billion of revenue annually and
employs 370,000 people globally. For more information about
Silver Lake and its portfolio,
please visit silverlake.com.
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SOURCE Expedia Group