Liberty Expedia greenshoe exercised, ups exchangeables to $400 million

By Marisa Wong

Morgantown, W.Va., June 13 – The underwriters of Liberty Expedia Holdings Inc.’s recent issue of 1% exchangeable senior debentures due June 30, 2047 exercised their $50 million over-allotment option in full. The $400 million issue closed on Tuesday, according to a press release.

Liberty Expedia priced $350 million of the 30-year senior debentures exchangeable for Expedia Inc. stock at par to yield 1% on June 8.

The deal came with an initial conversion premium of 32.5%. Pricing was at the rich end of the 1% to 1.5% yield talk and the 27.5% to 32.5% conversion premium talk, as previously reported.

BofA Merrill Lynch, J.P. Morgan Securities LLC and UBS Securities LLC are the joint bookrunners for the Rule 144A offering.

Exchanges will be settled in Expedia stock, cash or both, at Liberty’s option. The initial conversion rate is 5.1566 shares per each $1,000 of notes.

Holders can put the paper on or after July 5, 2022. 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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