Liberty Expedia Holdings, Inc. (Nasdaq: LEXEA, LEXEB) has closed its previously announced private offering of USD 400 million aggregate original principal amount of its 1.0% exchangeable senior debentures due 2047 (the “debentures”), including debentures with an aggregate original principal amount of USD 50 million issued pursuant to the exercise of an option granted to the initial purchasers, the company said.
Upon an exchange of debentures, the company, at its option, may deliver shares of Expedia, Inc. common stock, cash or a combination of Expedia common stock and cash.
Initially, 5.1566 shares of Expedia common stock are attributable to each USD 1,000 original principal amount of the debentures, representing an initial exchange price of approximately USD 193.93 for each share of Expedia common stock.
A total of approximately 2.1 million shares of Expedia common stock are attributable to the debentures. Interest is payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing September 30, 2017.
The debentures may be redeemed by the company, in whole or in part, on or after July 5, 2022. Holders of the debentures also have the right to require the company to purchase their debentures on July 5, 2022.
The redemption and purchase price will generally equal 100% of the adjusted principal amount of the debentures plus accrued and unpaid interest, plus any final period distribution.
The company expects to use the net proceeds from the offering to pay down outstanding borrowings of USD 350 million under a margin loan facility entered into by the company´s wholly owned special purpose subsidiary.
Liberty Expedia principal assets consist of its interest in Expedia, Inc. and its subsidiary Vitalize, LLC. Expedia is an online travel company, empowering business and leisure travelers with the tools and information they need to efficiently research, plan, book and experience travel.