Liberty TripAdvisor Holdings Announces $325 million Investment by Certares
March 16 2020 - 08:15AM
Business Wire
Liberty TripAdvisor Holdings, Inc. (“Liberty TripAdvisor”)
(Nasdaq: LTRPA, LTRPB) announced today that it has entered into an
Agreement (“Agreement”) with funds managed by Certares Management
LLC (“Certares”) whereby Certares will purchase $325 million of 8%
Series A Cumulative Redeemable Preferred Stock. The net proceeds
from this investment, combined with $34 million of secured
borrowings against a variable price forward and cash on hand, will
repay 100% of the outstanding balance under Liberty TripAdvisor’s
existing margin loan. Upon completion of this investment, Greg
O’Hara, Founder and Senior Managing Director of Certares, is
expected to join the Liberty TripAdvisor Board.
“We welcome Certares as a strategic investor in Liberty
TripAdvisor,” said Greg Maffei, Liberty TripAdvisor Chairman,
President & CEO. “Certares has deep experience and a highly
successful track record investing in the travel, tourism and
hospitality sectors, and we will greatly benefit from Greg’s
insight on our board. In addition, and importantly, this investment
secures long-term financing, which is not tied to stock price
movements in this volatile environment.”
“Liberty TripAdvisor is a natural fit for Certares,” said Greg
O’Hara. “We seek leaders in our sectors and look forward to deeper
involvement with Liberty TripAdvisor and TripAdvisor, the world’s
largest online travel community.”
The Agreement contains certain covenants of Liberty TripAdvisor
and Certares. These covenants along with additional terms of the
Preferred Stock can be found in the Form 8-K that will be filed by
Liberty TripAdvisor with the U.S. Securities and Exchange
Commission.
Liberty TripAdvisor expects to complete this investment within
10 business days.
Goldman Sachs & Co. LLC and Société Générale S.A. served as
financial advisors to Liberty TripAdvisor and Baker Botts L.L.P.
served as its legal counsel. Simpson Thacher & Bartlett LLP
served as Certares’ legal counsel.
Forward-Looking Statements
This press release includes certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements relating to the investment by
Certares and the use of proceeds therefrom and changes to the
Liberty TripAdvisor board of directors. These forward-looking
statements involve many risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
by such statements, including, without limitation, general market
conditions and conditions to the completion of the investment by
Certares. These forward-looking statements speak only as of the
date of this press release, and Liberty TripAdvisor expressly
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statement contained herein to
reflect any change in Liberty TripAdvisor’s expectations with
regard thereto or any change in events, conditions or circumstances
on which any such statement is based. Please refer to the publicly
filed documents of Liberty TripAdvisor, including its most recent
Annual Report on Form 10-K, for risks and uncertainties related to
Liberty TripAdvisor’s business which may affect the statements made
in this press release.
About Liberty TripAdvisor
Liberty TripAdvisor Holdings, Inc. (Nasdaq: LTRPA, LTRPB)
consists of its subsidiary TripAdvisor. TripAdvisor is the world’s
largest online travel community, aggregating reviews and opinions
from its community of travelers about destinations, accommodations,
restaurants and activities throughout the world.
About Certares
Established in 2012, Certares focuses on direct investments in
proprietary transactions, leveraging deep sector experience in the
travel and hospitality industries, and with a consistent emphasis
on partnership with management teams to drive growth. Certares
brings together a team with decades of both operational and
investment experience in private equity, travel, tourism,
hospitality and travel-related business and consumer services. For
more information, please visit www.certares.com.
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