Expedia Group, Inc. Announces Pricing of Private Offering of Senior Notes
July 07 2020 - 6:36PM
Business Wire
Expedia Group, Inc. (“Expedia Group” or the “Company”) today
announced that it has agreed to sell $500 million aggregate
principal amount of unsecured 3.600% senior notes due 2023 (the
"2023 Notes") and $750 million aggregate principal amount of
unsecured 4.625% senior notes due 2027 (the “2027 Notes” and,
together with the 2023 Notes, the “Notes”) in a private offering.
The 2023 Notes will be issued at a price of 99.922% of the
aggregate principal amount. The 2027 Notes will be issued at a
price of 99.997% of the aggregate principal amount. The Notes will
be guaranteed by certain subsidiaries of Expedia Group.
In light of attractive market conditions, the Company is
opportunistically pursuing ways to optimize its capital structure
and reduce its cost of capital. Expedia Group currently expects to
use the net proceeds to redeem outstanding shares of its 9.5%
Series A Preferred Stock after May 5, 2021, when the redemption
premium is scheduled to decrease. Depending on business, liquidity
and other trends or conditions, however, the Company may elect to
use all or part of the proceeds for other general corporate
purposes, which may include repaying, prepaying, redeeming or
repurchasing other indebtedness in lieu of or pending such
redemption. The private offering of the Notes is expected to close
on July 14, 2020. The closing of the Notes offering is subject to
customary closing conditions, and there can be no assurance that
the issuance and sale of the Notes will be consummated.
The Notes will be offered and sold only to qualified
institutional buyers pursuant to Rule 144A and outside the United
States pursuant to Regulation S under the Securities Act of 1933,
as amended (the “Securities Act”). The Notes have not been
registered under the Securities Act or any state securities laws
and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state laws.
This press release does not constitute an offer to sell or a
solicitation of an offer to purchase the Notes or any other
securities and does not constitute an offer, solicitation or sale
in any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful.
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, our quarterly report on Form 10-Q for the
three months ended March 31, 2020 and Exhibit 99.2 to our Current
Report on Form 8-K filed with the SEC on April 23, 2020 (File No.:
20809410). 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®, 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
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version on businesswire.com: https://www.businesswire.com/news/home/20200707005924/en/
Media Contacts: Dave McNamee dmcnamee@expediagroup.com
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