Priceline gets $175 million revolving credit facility

By Laura Lutz

Des Moines, Sept. 28 - Priceline.com Inc. negotiated a $175 million secured revolving line of credit from lenders JPMorgan Chase Bank, NA; Bank of America, NA; RBS Citizens, NA; and Bank of Scotland plc, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan also will act as administrative agent, and Bank of America also will act as syndication agent.

Any borrowings under the facility are due on Sept. 26, 2012. Priceline may prepay any loans without penalty.

At Priceline's choice, borrowings under the facility will bear interest at the greater of the Prime rate and the federal funds rate plus 0.5%, plus an applicable margin, or at Libor plus an applicable margin.

The facility provides for the issuance of up to $50 million of letters of credit as well as swingline loans.

Priceline may add an additional $100 million to the line of credit, and the company may enter into term loans in one or more tranches.

As of Sept. 26, Priceline had no immediate plans to draw upon the line of credit, according to the 8-K.

The agreement also requires Priceline to maintain certain financial ratios.

Proceeds will be used for working capital and general corporate purposes.

Based in Norwalk, Conn., Priceline operates a travel web site.

© 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.