By Stephanie N. Rotondo
Seattle, June 8 – Liberty Expedia Holdings Inc. priced a $350 million Rule 144A offering of 30-year senior debentures exchangeable for Expedia Inc. stock at par to yield 1%, the company said in a press release on Thursday.
The issue came with an initial conversion premium of 32.5%. Pricing was at the rich end of the 1% to 1.5% yield talk and the 27.5% to 32.5% conversion premium talk.
BofA Merrill Lynch, J.P. Morgan Securities LLC and UBS Securities LLC are the joint bookrunners.
There is a $50 million over-allotment option.
The exchangeable bonds mature June 30, 2047.
Exchanges will be settled in Expedia stock, cash or both, at Liberty’s option. The initial conversion rate is 5.1566 shares per each $1,000 of notes.
Holders can put the paper on or after July 5, 2022. The company also has the option to redeem the issue after five years.
Liberty plans to use the proceeds to repay up to $350 million outstanding under a margin loan facility. Any remaining funds will be used for general corporate purposes, including to pay interest on the debentures.
Liberty Expedia is an Englewood, Colo.-based company whose primary assets include its stake in Expedia Inc. and Vitalize LLC. Expedia is a Bellevue, Wash.-based online travel company.
| Issuer: | Liberty Expedia Holdings Inc.
|
| Securities: | Senior exchangeable debentures
|
| Amount: | $350 million
|
| Greenshoe: | $50 million
|
| Maturity: | June 30, 2047
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC and UBS Securities LLC
|
| Coupon: | 1%
|
| Price: | Par of $1,000
|
| Yield: | 1%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $193.93
|
| Conversion rate: | 5.1566 shares
|
| Call options: | On or after July 5, 2022 at par plus accrued interest
|
| Put options: | On or after July 5, 2022
|
| Pricing date: | June 8
|
| Settlement date: | June 13
|
| Distribution: | Rule 144A
|
| Talk: | 1% to 1.5% yield, up 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: EXPE
|
| Stock price: | $146.36 as of June 7 close
|
| Market capitalization: | $22.08 billion
|
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