By Paul A. Harris
St. Louis, June 19 - Expedia Inc. priced a downsized $400 million issue of 8½% eight-year senior notes (Ba2/BB) at 98.572 to yield 8¾% on Thursday, according to a market source.
The notes came at the revised price talk of 8½% at a discount to yield 8¾%. Earlier yield talk was in the 8½% area.
The deal was downsized from $500 million but came at the high end of the $375 million to $400 million range that underwriters announced early Thursday.
J.P. Morgan Securities Inc. and Banc of America Securities LLC were joint bookrunners for the Rule 144A with registration rights issue. BNP Paribas, HSBC, Mizuho Securities USA, RBS Greenwich Capital and SG Corporate & Investment Banking were the co-managers.
Proceeds will be used for general corporate purposes and to repay $330 million outstanding under the company's credit facility.
The prospective issuer is a Bellevue, Wash., online travel services company.
| Issuer: | Expedia Inc.
|
| Amount: | $400 million, decreased from $500 million
|
| Maturity: | July 1, 2016
|
| Security description: | Senior unsecured notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Banc of America Securities LLC
|
| Co-managers: | BNP Paribas, HSBC, Mizuho Securities USA, RBS Greenwich Capital, SG Corporate & Investment Banking
|
| Coupon: | 8½%
|
| Price: | 98.572
|
| Yield: | 8¾%
|
| Spread: | 470 bps
|
| Call protection: | Four years
|
| Trade date: | June 19
|
| Settlement date: | June 24
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 8½% at a discount to yield 8¾% (revised from 8½% area)
|
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