Booking Holdings enters $2 billion five-year revolver

By Marisa Wong

Los Angeles, May 19 – Booking Holdings Inc. entered into a credit agreement on May 17 with JPMorgan Chase Bank, NA as administrative agent for an up to $2 billion revolving line of credit, according to an 8-K filing with the Securities and Exchange Commission.

The revolver provides for the issuance of up to $80 million of letters of credit, as well as up to $100 million of swingline loans.

Other than swingline loans, which are available only in dollars, the revolving loans and the letters of credit are available in dollars, euros, pounds sterling and any other currency agreed to by the administrative agent and each of the lenders.

The company may request an increase to the revolving line of credit or to enter into one or more tranches of term loans, not to exceed in the aggregate $1 billion.

The credit agreement terminates and borrowings are due on May 17, 2028, subject to any extension requested by the company and agreed to by the lenders.

Borrowings bear interest at adjusted term SOFR or adjusted Euribor plus an applicable rate ranging from 75 basis points to 137.5 bps. The commitment fee ranges from 7 bps to 15 bps. Pricing is based on ratings.

The credit agreement also contains a financial covenant requiring that the company maintain a certain leverage ratio, which may be adjusted upwards in connection with certain acquisitions.

Loan proceeds can be used for working capital needs and general corporate purposes.

As of May 19, the company has no immediate plans to draw on the revolving credit line, though it may do so in the future.

Bank of America, NA is syndication agent for the credit agreement. JPMorgan, BofA Securities, Inc., BNP Paribas Securities Corp., Citibank, NA, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA, TD Securities (USA) LLC, U.S. Bank NA and Banco Santander, SA, New York Branch are joint bookrunners and joint lead arrangers.

BNP Paribas, Citibank, Deutsche Bank, HSBC Bank USA, NA, Goldman Sachs Bank USA, TD Bank, NA and Banco Santander are co-documentation agents.

Based in Norwalk, Conn., Booking owns and operates travel fare aggregators and travel fare metasearch engines.

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