Expedia amends loan, modifying covenants and pricing

By Sara Rosenberg

New York, Feb. 19 - Expedia Inc. amended its credit facility, revising covenants and increasing pricing, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Under the amendment, the leverage ratio is now set at 2.75 to 1.00, compared to the previous requirement of 3.00 to 1.00.

And, the company replaced its consolidated net worth requirement of $3.5 billion with a minimum interest coverage covenant of 3.25 to 1.00.

In addition, pricing on the facility was increased by 200 basis points. The spread can range from Libor plus 250 bps to 287.5 bps based on leverage.

The amendment was completed on Feb. 18.

JPMorgan is the administrative agent on the deal.

Also on Thursday, Expedia announced that it plans to repay $550 million of the $650 million it currently has drawn under its revolving credit facility by this Friday.

Expedia is a Bellevue, Wash.-based online travel company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.