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Expedia to get new facility, may issue debt securities with stock tender
By Sara Rosenberg
New York, June 29 - Expedia Inc. is planning on getting a new credit facility to help fund its modified Dutch auction tender offer for its common shares, according to a SC TO-I filed with the Securities and Exchange Commission Friday.
In addition, the company will also use proceeds from the public or private placement of new debt securities, and/or additional indebtedness that would be drawn under its existing revolver to fund the offer as well, the filing said.
The existing $1 billion five-year unsecured revolver, led by JPMorgan, would be amended in connection with this transaction.
Expedia will offer to repurchase up to 116,666,665 shares, or roughly 42%, of its common stock in the tender for a minimum of $27.50 and a maximum of $30.00 per share.
Assuming that the full amount of shares is tendered, the aggregate purchase price will be between $3.2 billion and $3.5 billion.
The tender offer, which is subject to financing, will expire during the week of Aug. 6.
Expedia is a Bellevue, Wash.-based online travel services company.
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