By Abigail W. Adams
Portland, Me., Feb. 17 – Expedia Group Inc. priced an upsized $900 million of five-year convertible notes (Baa3/BBB-/BBB-) after the market close on Tuesday at par with a coupon of 0% and an initial conversion premium of 72.5%, according to a company news release.
Pricing came in line with initial talk for a fixed coupon of 0% and richer than revised talk for an initial conversion premium of 72.5%, according to a market source.
Initial price talk was for a fixed 0% coupon and an initial conversion premium of 57.5% to 62.5%; however, talk tightened during bookbuilding to an initial conversion premium of 65% to 70%.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and BofA Securities Inc. were active bookrunners of the Rule 144A deal, which carries a greenshoe of $100 million.
Mizuho Securities USA Inc., HSBC Securities (USA) Inc. and BNP Paribas Securities Corp. were also bookrunners.
The initial size of the offering was $825 million.
The notes are non-callable for three years and then subject to a 130% hurdle.
There is takeover and dividend protection.
Concurrently with the convertible notes offering, Expedia priced a $1 billion offering of 2.95% senior notes due 2031 (Baa3/BBB-/BBB-) at 99.081.
Net proceeds from the convertible notes offering are expected to be $885 million, and proceeds from the senior notes offering are expected to be $983 million.
Proceeds will be used to finance the redemption of all of its outstanding 7% notes due 2025 and a portion of its outstanding 6.25% notes due 2025. Remaining proceeds will also be used to repay debt.
Expedia is a Bellevue, Wash.-based online travel company.
| Issuer: | Expedia Group Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $900 million
|
| Greenshoe: | $100 million
|
| Maturity: | Feb. 15, 2026
|
| Active bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and BofA Securities Inc.
|
| Passive bookrunners: | Mizuho Securities USA Inc., HSBC Securities (USA) Inc. and BNP Paribas Securities Corp.
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 72.5%
|
| Conversion price: | $255.02
|
| Conversion rate: | 3.9212
|
| Call options: | Non-callable for three years and then subject to a 130% hurdle
|
| Pricing date: | Feb. 16
|
| Settlement date: | Feb. 19
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A
|
| Talk: | Initial talk for fixed 0% coupon and initial conversion premium of 57.5% to 62.5%; tightened talk for initial conversion premium of 65% to 70%
|
| Stock symbol: | Nasdaq: EXPE
|
| Stock price: | $147.84 at market close Feb. 16
|
| Market capitalization: | $21.27 billion
|
|
|
|
|
© 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.
