Liberty to sell 30-year debentures exchangeable for Expedia stock at 1%-1.5% yield, up 27.5%-32.5%

By Stephanie N. Rotondo

Seattle, June 6 – Liberty Expedia Holdings Inc. is offering $350 million of 30-year senior debentures exchangeable for Expedia Inc. stock, the company said in a press release on Tuesday.

Price talk on the Rule 144A deal is for a yield of 1% to 1.5% and an initial conversion premium of 27.5% to 32.5%, a market source reported.

BofA Merrill Lynch, J.P. Morgan Securities LLC and UBS Securities LLC are the joint bookrunners.

There is a $50 million over-allotment option.

The convertible bonds mature June 30, 2047.

Holders can exchange the debentures only during certain periods. Exchanges will be settled in cash, Expedia stock or a combination, at Liberty’s option.

Holders can put the paper after five years. The company also has the option to redeem the issue after five years.

Liberty plans to use the proceeds to repay up to $350 million outstanding under a margin loan facility. Any remaining funds will be used for general corporate purposes, including to pay interest on the debentures.

Liberty Expedia is an Englewood, Colo.-based company whose primary assets include its stake in Expedia Inc. and Vitalize LLC. Expedia is a Bellevue, Wash.-based online travel company.

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